HBA-JEK, AMW H.B. 2601 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2601 By: Coleman Ways & Means 7/19/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, state law provided exemptions from local appraisal taxes to parks, markets, fairgrounds, or other similar facilities for taxation of leaseholds or possessory interests in these public facilities owned by an incorporated city or town which were used in connection with a city's or town's convention and entertainment activities. Although many arenas, stadiums, convention centers, visitor centers, and concert halls were public facilities, these facilities were not included in the tax exemptions. House Bill 2601 includes a convention center, visitor center, sports facility with permanent seating, concert hall, arena, or stadium that is owned by an incorporated city or town among the local appraisal tax exemptions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2601 amends the Tax Code to include a leasehold or other possessory interest in a convention center, visitor center, sports facility with permanent seating, concert hall, arena, or stadium that is owned by an incorporated city or town as such leasehold or possessory interest serves a governmental, municipal, or public purpose or function when the facility is open to the public, regardless of whether a fee is charged for admission, to the types of exempt property that are prohibited from being listed in the name of the owner of the possessory interest. EFFECTIVE DATE January 1, 2001.