Cook Bill Ends Property Tax Break On Public Facility Corporation Apartments

The text as introduced · 230 words

89R5168 DRS-D

By: Cook
S.B. No. 2259

A BILL TO BE ENTITLED

AN ACT

relating to removing certain tax exemptions for leasehold or other

possessory interests in public facilities granted by public

facility corporations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 303.0421(f), Local Government Code, is

amended to read as follows:

(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

residential development , [ :

[ (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

Section 379B.011(b); and

[ (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

corporation.

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.