Bill Text: TX HB4528 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the ad valorem taxation of a leasehold or other possessory interest in certain property owned by a municipality.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2019-03-26 - Referred to Ways & Means [HB4528 Detail]
Download: Texas-2019-HB4528-Introduced.html
| 86R13027 SMH-D | ||
| By: Murphy | H.B. No. 4528 | |
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| relating to the ad valorem taxation of a leasehold or other | ||
| possessory interest in certain property owned by a municipality. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 25.07, Tax Code, is amended by amending | ||
| Subsection (b) and adding Subsection (d) to read as follows: | ||
| (b) Except as provided by Sections 11.11(b) and (c) and by | ||
| Subsection (d) of this section, 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 a municipality or county 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 Subchapter C, Chapter 681, Business & Commerce Code; | ||
| (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, that 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 | ||
| (Subtitle C1, Title 12, Local Government Code), by the same | ||
| municipality that owns the airport; | ||
| (4) the interest is in a part of: | ||
| (A) a park, market, fairground, or similar public | ||
| facility that is owned by a municipality; or | ||
| (B) a convention center, visitor center, sports | ||
| facility with permanent seating, concert hall, arena, or stadium | ||
| that is owned by a municipality 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: | ||
| (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 | ||
| (7) the property is part of a rail facility owned by a | ||
| rural rail transportation district operating under Chapter 172, | ||
| Transportation Code. | ||
| (d) Subsection (b)(4)(B) does not prohibit the listing of a | ||
| leasehold or other possessory interest in real property for | ||
| purposes of taxation of the possessory interest by a taxing unit | ||
| other than the municipality that owns the property unless the | ||
| governing body of the taxing unit approves the exemption of the | ||
| possessory interest in the manner provided by law for official | ||
| action by the governing body. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to the taxation for a tax year beginning on or after the effective | ||
| date of this Act of a leasehold or other possessory interest in a | ||
| facility completed after January 1, 2019. | ||
| SECTION 3. This Act takes effect January 1, 2020. | ||
