By:  Van de Putte                                     S.B. No. 1711
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to allowing taxing units to enter into tax abatement
 1-3     agreements with the owners of leasehold interests.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 312, Tax Code, is amended
 1-6     by adding Section 312.007 to read as follows:
 1-7           Sec. 312.007.  TAX ABATEMENT APPLICABLE TO LEASEHOLD
 1-8     INTEREST.  For purposes of tax abatement under this chapter, the
 1-9     owner of a leasehold interest in real property is considered to be
1-10     the owner of real property, and a reference to the owner's real
1-11     property in a provision of this chapter applicable to a tax
1-12     abatement agreement applies to the leased premises subject to the
1-13     leasehold interest.  A tax abatement agreement entered into by a
1-14     taxing unit under this chapter with the owner of a leasehold
1-15     interest may apply to:
1-16                 (1)  the taxable value, if any, of the leasehold
1-17     interest in the same manner as a tax abatement agreement with the
1-18     owner of real property would apply to the taxable value of the real
1-19     property; and
1-20                 (2)  tangible personal property located on the leased
1-21     premises in the same manner as a tax abatement agreement with the
1-22     owner of real property would apply to the tangible personal
1-23     property located on the real property.
1-24           SECTION 2.  This Act takes effect immediately if it receives
1-25     a vote of two-thirds of all the members elected to each house, as
 2-1     provided by Section 39, Article III, Texas Constitution.  If this
 2-2     Act does not receive the vote necessary for immediate effect, this
 2-3     Act takes effect September 1, 2001.