HB 3291
AN ACT relating to the public purpose designation and taxation of certain
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Allows Type A economic development corporations to own and manage projects on behalf of a municipality with a specific tax exemption status. The legislation essentially provides that these projects are considered to be owned, used, and held for a public purpose, which means they will be exempt from certain property tax assessments and leasehold taxation rules. By creating this exemption, the bill aims to provide financial advantages and flexibility for municipalities developing economic projects through their Type A corporations.
Subject Areas
Bill Text
relating to the public purpose designation and taxation of certain projects of Type A economic development corporations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 504, Local Government Code, is amended by adding Section 504.006 to read as follows: Sec. 504.006. PUBLIC PURPOSE DESIGNATION; EXEMPTION FROM TAXATION. (a) Notwithstanding any other law, the legislature finds for all constitutional and statutory purposes that: (1) a project authorized by Chapter 501 is owned, used, and held for a public purpose for and on behalf of the municipality that authorized the creation of the Type A (2) except as otherwise provided by this section, Section 501.160 of this code and Section 25.07(a), Tax Code, do not apply to a leasehold or other possessory interest granted by a Type A corporation during the period the corporation owns projects on behalf of the authorizing municipality. (b) A project is exempt from ad valorem taxation under Section 11.11, Tax Code, for the period prescribed by Subsection SECTION 2. This Act applies only to ad valorem taxes imposed for a tax year that begins on or after the effective date of this SECTION 3. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to the public purpose designation and taxation of certain
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