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 * * * * *