77R10457 GJH-F
By Coleman H.B. No. 2601
Substitute the following for H.B. No. 2601:
By Davis of Dallas C.S.H.B. No. 2601
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);
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 if the 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.