Tex.
Local Gov't Code Section 505.161
Public Purpose Designation; Exemption from Taxation
(a)
The legislature finds for all constitutional and statutory purposes that:(1)
a project of the type added to the definition of “project” by this subchapter is owned, used, and held for a public purpose for and on behalf of the municipality that authorized the creation of the Type B corporation; and(2)
except as otherwise provided by this section, Section 501.160 (Owning or Operating Project as Business) of this subtitle and Section 25.07 (Leasehold and Other Possessory Interests in Exempt Property)(a), Tax Code, do not apply to a leasehold or other possessory interest granted by a Type B 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 (Public Property), Tax Code, for the period described by Subsection (a)(2) of this section.(c)
This subsection applies only if the voters of the authorizing municipality of a Type B corporation have not approved the adoption of a sales and use tax for the benefit of the corporation under Section 505.251 (Tax Authorized). An ownership, leasehold, or other possessory interest of a person other than the corporation in real property constituting a project of the corporation described by this section:(1)
is subject to ad valorem taxation under Section 25.07 (Leasehold and Other Possessory Interests in Exempt Property)(a), Tax Code; or(2)
if the interest was created under an agreement entered into by the corporation before September 1, 1999, is covered by the provisions of the law codified by this section that govern ad valorem taxation of the ownership, leasehold, or other possessory interest that were in effect on the date the agreement was executed.
Source:
Section 505.161 — Public Purpose Designation; Exemption from Taxation, https://statutes.capitol.texas.gov/Docs/LG/htm/LG.505.htm#505.161 (accessed May 4, 2024).
