78R6038 SMH-F

By:  Cook of Colorado                                             H.B. No. 1533



A BILL TO BE ENTITLED

AN ACT

relating to the ad valorem taxation of certain property owned by a 
municipality.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Section 11.11, Tax Code, is amended by amending 
Subsection (a) and adding Subsection (j) to read as follows:
	(a)  Except as provided by Subsections (b), [and] (c), and 
(j) [of this section], property owned by this state or a political 
subdivision of this state is exempt from taxation if the property is 
used for public purposes.
	(j)  Real property owned by a municipality and otherwise 
exempt under Subsection (a) is taxable by a taxing unit that elects 
to tax the property if the property is located outside the corporate 
limits of the municipality.  To tax the property in a tax year, the 
governing body of the taxing unit, not later than January 1 of that 
tax year, must take official action electing to tax the property and 
provide written notice of its action to the chief appraiser of the 
appraisal district that appraises property for the taxing unit in 
the territory in which the municipal property is located.  An 
election to tax the municipal property applies to all real property 
owned by the municipality and located outside the corporate limits 
of the municipality and continues in effect for each subsequent tax 
year until the election to tax the property is revoked or rescinded 
by the governing body of the taxing unit.
	SECTION 2.   This Act takes effect January 1, 2004, but only 
if the constitutional amendment to authorize the ad valorem 
taxation of real property that is owned by a city or town and is 
located outside the corporate limits of the city or town is approved 
by the voters.  If that constitutional amendment is not approved by 
the voters, this Act has no effect.