Removes certain tax exemptions for leasehold or possessory interests in public facilities granted by public facility corporations.

This bill amends the Local Government Code to remove certain tax exemptions for leasehold or other possessory interests in public facilities granted by public facility corporations. Specifically, it treats such interests the same as those granted by an authority under Section 379B.011(b). The bill also removes the exemption from sales and use taxes for materials used to improve the real property of the public facility. This change applies to ad valorem taxes imposed for a tax year that begins on or after the effective date of the Act, which is September 1, 2025.

Removes certain tax exemptions for leasehold or possessory interests in public facilities granted by public facility corporations.

This bill amends the Local Government Code to remove certain tax exemptions for leasehold or other possessory interests in public facilities granted by public facility corporations. Specifically, it treats such interests the same as those granted by an authority under Section 379B.011(b). The bill also removes the exemption from sales and use taxes for materials used to improve the real property of the public facility. This change applies to ad valorem taxes imposed for a tax year that begins on or after the effective date of the Act, which is September 1, 2025.