SB2259 - Relating to removing certain tax exemptions for leasehold or other possessory interests in public facilities granted by public facility corporations.

  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.