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Relating to the exemption from ad valorem taxation of certain
property owned by the TexAmericas Center.
No fiscal impact to the state is anticipated.
SB 579 would provide a property tax exemption to a leasehold or other possessory interest granted to a person by the TexAmericas Center or nonprofit corporation holding title for the TexAmericas Center. The bill would establish that such a leasehold or other interest is held for a "public purpose" for and on behalf of the TexAmericas Center. TexAmericas is a governmental agency and political subdivision of the state.
Texas Action recommends opposing SB 579 because it confers a special benefit upon a specific class (leaseholders at the TexAmericas Center). We understand that the purpose of this legislation is to place the TexAmericas Center on equal footing with similar special purpose districts. However, this would place the TexAmericas Center at a competitive advantage over private sector competitors because a business would have a property tax incentive to sign a lease with the TexAmericas center rather than with a private sector commercial property that does not have a tax exemption. For these reasons we oppose SB 579.