2003S0364-1 02/24/03


By:  Janek                                                        S.B. No. 684


A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of property owned 
by the state or a political subdivision.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (d), Section 11.11, Tax Code, is 
amended to read as follows:
	(d)  Property owned by the state that is not used for public 
purposes is taxable.  Property owned by a state agency, [or] 
institution, or political subdivision is not used for public 
purposes if the property is rented or leased for compensation to a 
private business enterprise to be used by it for a purpose not 
related to the performance of the duties and functions of the state 
agency or institution or used to provide private residential 
housing for compensation to members of the public other than 
students and employees of the state agency or institution owning 
the property, unless the residential use is secondary to its use by 
an educational institution primarily for instructional purposes.  
If property owned by a state agency, institution, or political 
subdivision that is being used for public purposes is leased to an 
organization which uses the property in a manner to qualify for an 
exemption under Section 11.18 or 11.20, the property shall remain 
tax-exempt. Any notice required by Section 25.19 [of this code] 
shall be sent to the agency or institution that owns the property, 
and it shall appear in behalf of the state in any protest or appeal 
related to taxation of the property.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.