1-1     By:  Van de Putte                                     S.B. No. 1711
 1-2           (In the Senate - Filed March 9, 2001; March 14, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 19, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 6, Nays 0;
 1-6     April 19, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1711                 By:  Lindsay
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to allowing taxing units to enter into tax abatement
1-11     agreements with the owners of leasehold interests.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subchapter A, Chapter 312, Tax Code, is amended
1-14     by adding Section 312.007 to read as follows:
1-15           Sec. 312.007.  TAX ABATEMENT APPLICABLE TO LEASEHOLD
1-16     INTEREST.  For purposes of tax abatement under this chapter, the
1-17     owner of a leasehold interest in real property is considered to be
1-18     the owner of real property, and a reference to the owner's real
1-19     property in a provision of this chapter applicable to a tax
1-20     abatement agreement applies to the leased premises subject to the
1-21     leasehold interest.  A tax abatement agreement entered into by a
1-22     taxing unit under this chapter with the owner of a leasehold
1-23     interest may apply to:
1-24                 (1)  the taxable value, if any, of the leasehold
1-25     interest in the same manner as a tax abatement agreement with the
1-26     owner of real property would apply to the taxable value of the real
1-27     property; and
1-28                 (2)  tangible personal property located on the leased
1-29     premises in the same manner as a tax abatement agreement with the
1-30     owner of real property would apply to the tangible personal
1-31     property located on the real property.
1-32           SECTION 2.  This Act takes effect immediately if it receives
1-33     a vote of two-thirds of all the members elected to each house, as
1-34     provided by Section 39, Article III, Texas Constitution.  If this
1-35     Act does not receive the vote necessary for immediate effect, this
1-36     Act takes effect September 1, 2001.
1-37                                  * * * * *