HBA-JEK, AMW C.S.H.B. 2601 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2601
By: Coleman
Ways & Means
4/2/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law provides 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 are 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 are public
facilities, these facilities are not included in the tax exemptions.
C.S.H.B. 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

C.S.H.B. 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 if the 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2601 modifies the original to conform to Texas Legislative Council
style and format.  The substitute also modifies the original by changing
the effective date of the Act from September 1, 2001, to January 1, 2001.