HB 11 Summary

• Implements incremental reduction of the commercial real property rental tax from 6% to 1% between January 1, 2015 and January 1, 2019, with the tax rate decreasing by 1 percentage point annually.

• Repeals section 212.031 (commercial rental tax) effective January 1, 2020, eliminating the tax on rental or license fees for commercial real property use.

• Maintains 13 specific exemptions from the commercial rental tax, including agricultural property, dwelling units, airport property, port facilities, qualified motion picture production services, and food/beverage concessionaires.

• Conforms related statutes (212.0598, 212.0602, 288.1258, 338.234, and 341.840) to remove references to the repealed commercial rental tax provision effective January 1, 2020.

• Takes effect July 1, 2014, with January 1, 2020 as the effective date for repeal and conforming amendments.