Texas Tax Code - Section 11.11. Public Property
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Texas Laws > Tax Code > Texas Tax Code - Section 11.11. Public Property
§ 11.11. PUBLIC PROPERTY. (a) Except as provided by
Subsections (b) and (c) of this section, property owned by this
state or a political subdivision of this state is exempt from
taxation if the property is used for public purposes.
(b) Land owned by the Permanent University Fund is taxable
for county purposes. Any notice required by Section 25.19 of this
code shall be sent to the comptroller, and the comptroller shall
appear in behalf of the state in any protest or appeal relating to
taxation of Permanent University Fund land.
(c) Agricultural or grazing land owned by a county for the
benefit of public schools under Article VII, Section 6, of the Texas
Constitution is taxable for all purposes. The county shall pay the
taxes on the land from the revenue derived from the land. If
revenue from the land is insufficient to pay the taxes, the county
shall pay the balance from the county general fund.
(d) Property owned by the state that is not used for public
purposes is taxable. Property owned by a state agency or
institution is not used for public purposes if the property is
rented or leased for compensation to a private business enterprise
to be used by it for a purpose not related to the performance of the
duties and functions of the state agency or institution or used to
provide private residential housing for compensation to members of
the public other than students and employees of the state agency or
institution owning the property, unless the residential use is
secondary to its use by an educational institution primarily for
instructional purposes. Any notice required by Section 25.19 of
this code shall be sent to the agency or institution that owns the
property, and it shall appear in behalf of the state in any protest
or appeal related to taxation of the property.
(e) Property that is held or dedicated for the support,
maintenance, or benefit of an institution of higher education as
defined by Section 61.003, Education Code, but is not rented or
leased for compensation to a private business enterprise to be used
by it for a purpose not related to the performance of the duties and
functions of the state or institution or is not rented or leased to
provide private residential housing to members of the public other
than students and employees of the state or institution is not
taxable. If a portion of property of an institution of higher
education is used for public purposes and a portion is not used for
those purposes, the portion of the property used for public
purposes is exempt under this subsection. All oil, gas, and other
mineral interests owned by an institution of higher education are
exempt from all ad valorem taxes. Property bequeathed to an
institution is exempt from the assessment of ad valorem taxes from
the date of the decedent's death, unless:
(1) the property is leased for compensation to a
private business enterprise as provided in this subsection; or
(2) the transfer of the property to an institution is
contested in a probate court, in which case ad valorem taxes shall
be assessed to the estate of the decedent until the final
determination of the disposition of the property is made. The
property is exempt from the assessment of ad valorem taxes upon
vesting of the property in the institution.
(f) Property of a higher education development foundation
or an alumni association that is located on land owned by the state
for the support, maintenance, or benefit of an institution of
higher education as defined in Chapter 61, Education Code, is
exempt from taxation if:
(1) the foundation or organization meets the
requirements of Sections 11.18(e) and (f) and is organized
exclusively to operate programs or perform other activities for the
benefit of institutions of higher education; and
(2) the property is used exclusively in those programs
or activities.
(g) For purposes of this section, an improvement is owned by
the state and is used for public purposes if it is:
(1) located on land owned by the Texas Department of
Corrections;
(2) leased and used by the department; and
(3) subject to a lease-purchase agreement providing
that legal title to the improvement passes to the department at the
end of the lease period.
(h) For purposes of this section, tangible personal
property is owned by this state or a political subdivision of this
state if it is subject to a lease-purchase agreement providing that
the state or political subdivision, as applicable, is entitled to
compel delivery of the legal title to the property to the state or
political subdivision, as applicable, at the end of the lease term.
The property ceases to be owned by the state or political
subdivision, as applicable, if, not later than the 30th day after
the date the lease terminates, the state or political subdivision,
as applicable, does not exercise its right to acquire legal title to
the property.
(i) A corporation organized under the Texas Non-Profit
Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
Statutes) that engages exclusively in providing chilled water and
steam to an eligible institution, as defined by Section 301.031,
Health and Safety Code, is entitled to an exemption from taxation of
the property the corporation owns as though the property of the
corporation were owned by this state and used for health or
educational purposes.
(j) For purposes of this section, any portion of a facility
owned by the Texas Department of Transportation that is part of the
Trans-Texas Corridor, is a rail facility or system, or is a highway
in the state highway system, and that is licensed or leased to a
private entity by that department under Chapter 91, 223, or 227,
Transportation Code, is public property used for a public purpose
if the rail facility or system, highway, or facility is operated by
the private entity to provide transportation or utility services.
Any part of a facility, rail facility or system, or state highway
that is licensed or leased to a private entity for a commercial
purpose is not exempt from taxation.
Acts 1979, 66th Leg., p. 2234, ch. 841, § 1, eff. Jan. 1, 1980.
Amended by Acts 1981, 67th Leg., 1st C.S., p. 127, ch. 13, § 30,
eff. Jan. 1, 1984; Acts 1983, 68th Leg., p. 4821, ch. 851, § 5,
eff. Aug. 29, 1983; Acts 1983, 68th Leg., p. 5419, ch. 1007, § 1,
eff. Jan. 1, 1984; Acts 1989, 71st Leg., ch. 796, § 14, eff. Jan.
1, 1990; Acts 1989, 71st Leg., ch. 1021, § 1, eff. Aug. 28, 1989;
Acts 1990, 71st Leg., 6th C.S., ch. 12, § 2(31), eff. Sept. 6,
1990; Acts 1991, 72nd Leg., 2nd C.S., ch. 6, § 9, eff. Sept. 1,
1991; Acts 1997, 75th Leg., ch. 843, § 1, eff. Jan. 1, 1998;
Acts 2001, 77th Leg., ch. 362, § 1, eff. May 26, 2001; Acts 2003,
78th Leg., ch. 1266, § 1.01, eff. June 20, 2003; Acts 2005, 79th
Leg., ch. 281, § 2.95, eff. June 14, 2005.
Section: 6.411 6.412 6.413 6.42 6.43 11.01 11.02 11.11 11.111 11.12 11.13 11.14 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
HAVING VALUE OF LESS THAN $500. (a) A person is entitled to an
exemption from taxation of the tangible personal property the
person owns that is held or used for the production of income if
that property has a taxable value of less than $500.
(b) The exemption provided by Subsection (a) applies to each
separate taxing unit in which a person holds or uses tangible
personal property for the production of income, and, for the
purposes of Subsection (a), all property in each taxing unit is
aggregated to determine taxable value.
Added by Acts 1995, 74th Leg., ch. 296, § 1, eff. Jan 11.146. MINERAL INTEREST HAVING VALUE OF LESS THAN
$500. (a) A person is entitled to an exemption from taxation of a
mineral interest the person owns if the interest has a taxable value
of less than $500.
(b) The exemption provided by Subsection (a) applies to each
separate taxing unit in which a person owns a mineral interest and,
for the purposes of Subsection (a), all mineral interests in each
taxing unit are aggregated to determine value.
Added by Acts 1995, 74th Leg., ch. 296, § 1, eff. Jan 11.15
Last modified: August 11, 2007
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