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A BILL TO BE ENTITLED
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AN ACT
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relating to removing certain tax exemptions for leasehold or other |
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possessory interests in public facilities granted by public |
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facility corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 303.0421(f), Local Government Code, is |
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amended to read as follows: |
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(f) Notwithstanding Sections 303.042(a) and (b) and except |
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as otherwise provided by this section, during the period that a |
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corporation owns a particular public facility that is a multifamily |
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residential development,[: |
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[(1) a leasehold or other possessory interest in the |
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real property of the public facility granted by the corporation |
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shall be treated in the same manner as a leasehold or other |
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possessory interest in real property granted by an authority under |
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Section 379B.011(b); and |
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[(2)] the materials used by a person granted a |
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possessory interest in the real property of the public facility by |
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the corporation [described by Subdivision (1)] to improve the real |
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property of the public facility shall be exempt from all sales and |
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use taxes because the materials are for the benefit of the |
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corporation. |
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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. |