HBA-KDB H.B. 2965 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2965 By: Longoria Ways & Means 3/26/2001 Introduced BACKGROUND AND PURPOSE According to a recent Attorney General opinion (JC-0300), tax abatements can only be granted to an owner of real property that is located in a reinvestment zone. The lessee is thus subject to the state property tax. This may cause a problem for communities promoting economic development in reinvestment zones that may seek to use tax abatements to encourage individuals or corporations to lease property in such zones. House Bill 2965 authorizes the governing body of a taxing unit to grant tax abatements to a lessee of real property located in a reinvestment zone. 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 2965 amends the Tax Code to authorize the governing body of a taxing unit to grant tax abatements to a lessee, in addition to an owner, of real property located in a reinvestment zone. EFFECTIVE DATE September 1, 2001.