Bill

SB 1771

86(R) - 2019
Senate Property Tax
Senate Property Tax

Vote Recommendation

Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral

Author(s)

Paul Bettencourt

Bill Caption

Relating to the ad valorem taxation of a leasehold or other possessory interest in certain property owned by a municipality.

Fiscal Notes

Passage of SB 1771 would allow for taxing of a possessory interest in exempt property, in effect reducing the amount taken out of the Foundation School Fund, reducing some costs to the state. 

Bill Analysis

According to the bill's author, when a taxing entity purchases land, that property is removed from the tax rolls. The taxing entity that purchased the land may then lease the land to a private entity and abate property taxes of all taxing units related to the land, regardless of a contrary decision by another taxing unit to abate taxes. For example, a municipality that purchased land could unilaterally abate property taxes of all other taxing entities that overlap the purchased land.

SB 1771 would allow the listing of a leasehold or possessory interest on tax rolls for the purpose of taxation unless the governmental body approves the property tax exemption. In effect, this bill would prevent one political subdivision from abating all of the property taxes due to another subdivision without its consent.

Vote Recommendation Notes

Texas Action is neutral on SB 1771 because it does not affect our liberty principles.