TX SB2259

Removes the property tax exemption for leasehold or other possessory interests in real property of multifamily residential developments granted by public facility corporations

Previously, these interests were treated the same as those granted by housing authorities under Section 379B.011(b), which provided tax-exempt status

Maintains the sales and use tax exemption for materials used to improve public facility corporation properties by persons granted possessory interests

Applies only to ad valorem (property) taxes imposed for tax years beginning on or after the effective date

Takes effect September 1, 2025