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A BILL TO BE ENTITLED
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AN ACT
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relating to the public purpose designation and taxation of certain |
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projects of Type A economic development corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 504, Local Government |
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Code, is amended by adding Section 504.006 to read as follows: |
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Sec. 504.006. PUBLIC PURPOSE DESIGNATION; EXEMPTION FROM |
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TAXATION. (a) Notwithstanding any other law, the legislature |
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finds for all constitutional and statutory purposes that: |
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(1) a project authorized by Chapter 501 is owned, |
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used, and held for a public purpose for and on behalf of the |
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municipality that authorized the creation of the Type A |
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corporation; and |
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(2) except as otherwise provided by this section, |
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Section 501.160 of this code and Section 25.07(a), Tax Code, do not |
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apply to a leasehold or other possessory interest granted by a Type |
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A corporation during the period the corporation owns projects on |
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behalf of the authorizing municipality. |
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(b) A project is exempt from ad valorem taxation under |
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Section 11.11, Tax Code, for the period prescribed by Subsection |
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(a)(2). |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2025. |