SB 2259

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