By:  Miller                                                       H.B. No. 1950



A BILL TO BE ENTITLED

AN ACT

Relating to a rural rail transportation district and taxation of a 
leasehold or other possessory interest.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  (a)  Section 25.07(b), Tax Code, is amended to 
read as follows:  
	(b)  Except as provided by Sections 11.11(b) [Subsections 
(b)] and (c) [of Section 11.11 of this code], a leasehold or other 
possessory interest in exempt property may not be listed if:
		(1)  the property is permanent university fund land;                          
		(2)  the property is county public school fund 
agricultural land;           
		(3)  the property is a part of a public transportation 
facility owned by an incorporated city or town and:
			(A)  is an airport passenger terminal building or 
a building used primarily for maintenance of aircraft or other 
aircraft services, for aircraft equipment storage, or for air 
cargo;
			(B)  is an airport fueling system facility;                                  
			(C)  is in a foreign-trade zone:                                             
				(i)  that has been granted to a joint airport 
board under Chapter 129, Acts of the 65th Legislature, Regular 
Session, 1977 (Article 1446.8, Vernon's Texas Civil Statutes);
				(ii)  the area of which in the portion of the 
zone located in the airport operated by the joint airport board does 
not exceed 2,500 acres; and
				(iii)  that is established and operating 
pursuant to federal law; or      
			(D)(i)  is in a foreign trade zone established 
pursuant to federal law after June 1, 1991, which operates pursuant 
to federal law;
				(ii)  is contiguous to or has access via a 
taxiway to an airport located in two counties, one of which has a 
population of 500,000 or more according to the federal decennial 
census most recently preceding the establishment of the foreign 
trade zone; and
				(iii)  is owned, directly or through a 
corporation organized under the Development Corporation Act of 1979 
(Article 5190.6, Vernon's Texas Civil Statutes), by the same 
incorporated city or town which owns the airport;
		(4)  the interest is in a part of:                                            
			(A)  a park, market, fairground, or similar public 
facility that is owned by an incorporated city or town; or
			(B)  a convention center, visitor center, sports 
facility with permanent seating, concert hall, arena, or stadium 
that is owned by an incorporated city or town as such leasehold or 
possessory interest serves a governmental, municipal, or public 
purpose or function when the facility is open to the public, 
regardless of whether a fee is charged for admission;
		(5)  the interest involves only the right to use the 
property for grazing or other agricultural purposes;
		(6)  the property is owned by the Texas National 
Research Laboratory Commission or by a corporation formed by the 
Texas National Research Laboratory Commission under Section 
465.008(g), Government Code, and is used or is useful in connection 
with an eligible undertaking as defined by Section 465.021, 
Government Code; [or]
		(7)  the property is:                                                         
			(A)  owned by a municipality, a public port, or a 
navigation district created or operating under Section 59, Article 
XVI, Texas Constitution, or under a statute enacted under Section 
59, Article XVI, Texas Constitution; and
			(B)  used as an aid or facility incidental to or 
useful in the operation or development of a port or waterway or in 
aid of navigation-related commerce; or
		(8)  the property is part of a rail facility owned by a 
rural rail transportation district created or operating under 
Chapter 623, Acts of the 67th Legislature, Regular Session, 1981 
(Article 6550c, Vernon's Texas Civil Statutes).
	(b)  Subsection (a) of this section takes effect January 1, 
2005 and applies only to an advalorem tax roll for a tax year that 
begins on or after that date.