77R10457 GJH-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the ad valorem taxation of certain possessory interests 1-3 in certain municipal property open to the public. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 25.07(b), Tax Code, is amended to read as 1-6 follows: 1-7 (b) Except as provided by Subsections (b) and (c) of Section 1-8 11.11 of this code, a leasehold or other possessory interest in 1-9 exempt property may not be listed if: 1-10 (1) the property is permanent university fund land; 1-11 (2) the property is county public school fund 1-12 agricultural land; 1-13 (3) the property is a part of a public transportation 1-14 facility owned by an incorporated city or town and: 1-15 (A) is an airport passenger terminal building or 1-16 a building used primarily for maintenance of aircraft or other 1-17 aircraft services, for aircraft equipment storage, or for air 1-18 cargo; 1-19 (B) is an airport fueling system facility; 1-20 (C) is in a foreign-trade zone: 1-21 (i) that has been granted to a joint 1-22 airport board under Chapter 129, Acts of the 65th Legislature, 1-23 Regular Session, 1977 (Article 1446.8, Vernon's Texas Civil 1-24 Statutes); 1-25 (ii) the area of which in the portion of 1-26 the zone located in the airport operated by the joint airport board 1-27 does not exceed 2,500 acres; and 2-1 (iii) that is established and operating 2-2 pursuant to federal law; or 2-3 (D)(i) is in a foreign trade zone established 2-4 pursuant to federal law after June 1, 1991, which operates pursuant 2-5 to federal law; 2-6 (ii) is contiguous to or has access via a 2-7 taxiway to an airport located in two counties, one of which has a 2-8 population of 500,000 or more according to the federal decennial 2-9 census most recently preceding the establishment of the foreign 2-10 trade zone; and 2-11 (iii) is owned, directly or through a 2-12 corporation organized under the Development Corporation Act of 1979 2-13 (Article 5190.6, Vernon's Texas Civil Statutes), by the same 2-14 incorporated city or town which owns the airport; 2-15 (4) the interest is in a part of: 2-16 (A) a park, market, fairground, or similar 2-17 public facility that is owned by an incorporated city or town; or 2-18 (B) a convention center, visitor center, sports 2-19 facility with permanent seating, concert hall, arena, or stadium 2-20 that is owned by an incorporated city or town if the leasehold or 2-21 possessory interest serves a governmental, municipal, or public 2-22 purpose or function when the facility is open to the public, 2-23 regardless of whether a fee is charged for admission; 2-24 (5) the interest involves only the right to use the 2-25 property for grazing or other agricultural purposes; 2-26 (6) the property is owned by the Texas National 2-27 Research Laboratory Commission or by a corporation formed by the 3-1 Texas National Research Laboratory Commission under Section 3-2 465.008(g), Government Code, and is used or is useful in connection 3-3 with an eligible undertaking as defined by Section 465.021, 3-4 Government Code; or 3-5 (7) the property is: 3-6 (A) owned by a municipality, a public port, or a 3-7 navigation district created or operating under Section 59, Article 3-8 XVI, Texas Constitution, or under a statute enacted under Section 3-9 59, Article XVI, Texas Constitution; and 3-10 (B) used as an aid or facility incidental to or 3-11 useful in the operation or development of a port or waterway or in 3-12 aid of navigation-related commerce. 3-13 SECTION 2. This Act takes effect January 1, 2001, and applies 3-14 only to tax years that begin on or after that date.