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); 2-1 (ii) the area of which in the portion of 2-2 the zone located in the airport operated by the joint airport board 2-3 does not exceed 2,500 acres; and 2-4 (iii) that is established and operating 2-5 pursuant to federal law; or 2-6 (D)(i) is in a foreign trade zone established 2-7 pursuant to federal law after June 1, 1991, which operates pursuant 2-8 to federal law; 2-9 (ii) is contiguous to or has access via a 2-10 taxiway to an airport located in two counties, one of which has a 2-11 population of 500,000 or more according to the federal decennial 2-12 census most recently preceding the establishment of the foreign 2-13 trade zone; and 2-14 (iii) is owned, directly or through a 2-15 corporation organized under the Development Corporation Act of 1979 2-16 (Article 5190.6, Vernon's Texas Civil Statutes), by the same 2-17 incorporated city or town which owns the airport; 2-18 (4) the interest is in a part of: 2-19 (A) a park, market, fairground, or similar 2-20 public facility that is owned by an incorporated city or town; or 2-21 (B) a convention center, visitor center, sports 2-22 facility with permanent seating, concert hall, arena, or stadium 2-23 that is owned by an incorporated city or town as such leasehold or 2-24 possessory interest serves a governmental, municipal, or public 2-25 purpose or function when the facility is open to the public, 2-26 regardless of whether a fee is charged for admission; 2-27 (5) the interest involves only the right to use the 3-1 property for grazing or other agricultural purposes; 3-2 (6) the property is owned by the Texas National 3-3 Research Laboratory Commission or by a corporation formed by the 3-4 Texas National Research Laboratory Commission under Section 3-5 465.008(g), Government Code, and is used or is useful in connection 3-6 with an eligible undertaking as defined by Section 465.021, 3-7 Government Code; or 3-8 (7) the property is: 3-9 (A) owned by a municipality, a public port, or a 3-10 navigation district created or operating under Section 59, Article 3-11 XVI, Texas Constitution, or under a statute enacted under Section 3-12 59, Article XVI, Texas Constitution; and 3-13 (B) used as an aid or facility incidental to or 3-14 useful in the operation or development of a port or waterway or in 3-15 aid of navigation-related commerce. 3-16 SECTION 2. This Act takes effect January 1, 2001, and applies 3-17 only to tax years that begin on or after that date. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2601 was passed by the House on April 20, 2001, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 2601 on May 25, 2001, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2601 was passed by the Senate, with amendments, on May 22, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor