HB 3291

Hefner Bill Lifts Property Tax Off Businesses Leasing City-Backed Projects

Died in committee

Verdict: Smells

SmellsInitial review

Rep. Cole HefnerRHouse 5

Both charges, and why

Carve-out

THE TEXT

…“apply to a leasehold or other possessory interest granted by a Type”…

Bill text, introduced version (I)

The tax break goes to whoever holds a lease or other possessory interest granted by a Type A corporation, which shields the occupant of the project and not just the public owner. The caption frames this as a public-purpose designation.

Carve-out

Caption mismatch

THE TEXT

…“apply to a leasehold or other possessory interest granted by a Type”…

Bill text, introduced version (I)

The caption speaks of taxation of projects of Type A corporations. The operative text also removes taxation of interests held by the parties those corporations grant leases or possession to, and the caption does not mention them.

Caption mismatch

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the public purpose designation and taxation of certain projects of Type A economic development corporations.

Caption from analyzed text · version I.

Summary

Caption: public purpose designation. Bill: the tenant’s leasehold or possessory interest goes untaxed.

The bill declares that every project of a Type A economic development corporation is held for a public purpose on behalf of the city that created it. It switches off the usual rules that tax a leasehold or other possessory interest when the corporation leases or grants use of a project to someone else, and it makes the project exempt from property tax while the corporation owns it. Businesses that lease or occupy these city-backed projects could stop paying property tax on their interest starting with tax years beginning on or after September 1, 2025.

Labels

Labels: NEVER GOT A HEARING. Filed Feb 25, 2025 and referred to the House Ways & Means committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB3291 · 2025-02-25

SOLD BY

Rep. Cole HefnerRHouse 5

ITEM

relating to the public purpose designation and taxation of certain projects of Type A economic development corporations.

WHAT IT DOES

Caption: public purpose designation. Bill: the tenant’s leasehold or possessory interest goes untaxed.

CHARGES

[x] CARVE-OUTanalysis confidence 60%

THE TEXT

…“apply to a leasehold or other possessory interest granted by a Type”…

Bill text, introduced version (I)

[x] CAPTION MISMATCHanalysis confidence 45%

THE TEXT

…“apply to a leasehold or other possessory interest granted by a Type”…

Bill text, introduced version (I)

TOTAL

No fiscal note in the loaded record.

HISTORY

Feb 25, 2025Filed
Mar 20, 2025Read first time
Mar 20, 2025Referred to Ways & Means

FILED UNDER

CORPORATE WELFARE

THE TEXT

…“apply to a leasehold or other possessory interest granted by a Type”…

Bill text, introduced version (I)

The bill lets businesses that lease or occupy economic development corporation projects escape the property tax that normally applies to their leasehold interest.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Cole Hefner

Donors

Texans for Lawsuit Reform PAC$108K Dustin Burrows Campaign$46K Gulf States Toyota Inc. State PAC$20K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$107,878.12

Texans for Lawsuit Reform PAC

$107,878.12

Cash: $65,000.00
Paid by others: $42,878.12
Total: $107,878.12

mail $42,794.79fundraiser $83.33

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 23, 2025 to Oct 17, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986158, 101009093, 101035205, 101069686.

Dustin Burrows Campaign$46,150.00

Dustin Burrows Campaign

$46,150.00

Cash: $25,000.00
Paid by others: $21,150.00
Total: $46,150.00

polling $21,150.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · Sep 30, 2025 to Jan 6, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101009093, 101031796.

Gulf States Toyota Inc. State PAC$20,000.00

Gulf States Toyota Inc. State PAC

$20,000.00

Cash: $20,000.00
Paid by others: $0.00
Total: $20,000.00

Also funds 90 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 16, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 23, 2025 to Oct 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986158, 101009093, 101035205, 101069686.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Texans for Lawsuit Reform PAC

$107,878.12

Cash: $65,000.00
Paid by others: $42,878.12
Total: $107,878.12

mail $42,794.79fundraiser $83.33

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 23, 2025 to Oct 17, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986158, 101009093, 101035205, 101069686.

Dustin Burrows Campaign

$46,150.00

Cash: $25,000.00
Paid by others: $21,150.00
Total: $46,150.00

polling $21,150.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · Sep 30, 2025 to Jan 6, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101009093, 101031796.

Gulf States Toyota Inc. State PAC

$20,000.00

Cash: $20,000.00
Paid by others: $0.00
Total: $20,000.00

Also funds 90 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 16, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 23, 2025 to Oct 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986158, 101009093, 101035205, 101069686.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Feb 25, 2025

03/20/2025 H Referred to Ways & Means: Mar 20 2025 11:50AM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Final status: Died in committee

Subjects

City Government--General

Economic & Industrial Development--General

Taxation--Property-Appraisals & Appraisal Districts

Taxation--Property-Exemptions

Taxation--Sales

DEVELOPMENT CORPORATIONS

Text

The text as introduced · 220 words

89R4884 DRS-F

By: Hefner
H.B. No. 3291

A BILL TO BE ENTITLED

AN ACT

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

corporation; and

(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

(a)(2).

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

Act.

SECTION 3. This Act takes effect September 1, 2025.