1-1 By: Coleman (Senate Sponsor - Gallegos) H.B. No. 2601 1-2 (In the Senate - Received from the House April 23, 2001; 1-3 April 24, 2001, read first time and referred to Committee on 1-4 Intergovernmental Relations; May 3, 2001, reported adversely, with 1-5 favorable Committee Substitute by the following vote: Yeas 4, Nays 1-6 0; May 3, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2601 By: Lindsay 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the ad valorem taxation of certain possessory interests 1-11 in certain municipal property open to the public. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Section 25.07(b), Tax Code, is amended to read as 1-14 follows: 1-15 (b) Except as provided by Subsections (b) and (c) of Section 1-16 11.11 of this code, a leasehold or other possessory interest in 1-17 exempt property may not be listed if: 1-18 (1) the property is permanent university fund land; 1-19 (2) the property is county public school fund 1-20 agricultural land; 1-21 (3) the property is a part of a public transportation 1-22 facility owned by an incorporated city or town and: 1-23 (A) is an airport passenger terminal building or 1-24 a building used primarily for maintenance of aircraft or other 1-25 aircraft services, for aircraft equipment storage, or for air 1-26 cargo; 1-27 (B) is an airport fueling system facility; 1-28 (C) is in a foreign-trade zone: 1-29 (i) that has been granted to a joint 1-30 airport board under Chapter 129, Acts of the 65th Legislature, 1-31 Regular Session, 1977 (Article 1446.8, Vernon's Texas Civil 1-32 Statutes); 1-33 (ii) the area of which in the portion of 1-34 the zone located in the airport operated by the joint airport board 1-35 does not exceed 2,500 acres; and 1-36 (iii) that is established and operating 1-37 pursuant to federal law; or 1-38 (D)(i) is in a foreign trade zone established 1-39 pursuant to federal law after June 1, 1991, which operates pursuant 1-40 to federal law; 1-41 (ii) is contiguous to or has access via a 1-42 taxiway to an airport located in two counties, one of which has a 1-43 population of 500,000 or more according to the federal decennial 1-44 census most recently preceding the establishment of the foreign 1-45 trade zone; and 1-46 (iii) is owned, directly or through a 1-47 corporation organized under the Development Corporation Act of 1979 1-48 (Article 5190.6, Vernon's Texas Civil Statutes), by the same 1-49 incorporated city or town which owns the airport; 1-50 (4) the interest is in a part of: 1-51 (A) a park, market, fairground, or similar 1-52 public facility that is owned by an incorporated city or town; or 1-53 (B) a convention center, visitor center, sports 1-54 facility with permanent seating, concert hall, arena, or stadium 1-55 that is owned by an incorporated city or town as such leasehold or 1-56 possessory interest serves a governmental, municipal, or public 1-57 purpose or function when the facility is open to the public, 1-58 regardless of whether a fee is charged for admission; 1-59 (5) the interest involves only the right to use the 1-60 property for grazing or other agricultural purposes; 1-61 (6) the property is owned by the Texas National 1-62 Research Laboratory Commission or by a corporation formed by the 1-63 Texas National Research Laboratory Commission under Section 1-64 465.008(g), Government Code, and is used or is useful in connection 2-1 with an eligible undertaking as defined by Section 465.021, 2-2 Government Code; or 2-3 (7) the property is: 2-4 (A) owned by a municipality, a public port, or a 2-5 navigation district created or operating under Section 59, Article 2-6 XVI, Texas Constitution, or under a statute enacted under Section 2-7 59, Article XVI, Texas Constitution; and 2-8 (B) used as an aid or facility incidental to or 2-9 useful in the operation or development of a port or waterway or in 2-10 aid of navigation-related commerce. 2-11 SECTION 2. This Act takes effect January 1, 2001, and applies 2-12 only to tax years that begin on or after that date. 2-13 * * * * *