HBA-KDB S.B. 1558 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1558 By: Madla Ways & Means 5/11/2001 Engrossed BACKGROUND AND PURPOSE Currently, certain military installations are exempt from ad valorem taxation. However, once such installations are closed or used for other purposes, the installations are no longer exempt from ad valorem taxation. Allowing military installations to retain tax exempt status may encourage job creation and capital investment. Senate Bill 1558 expands the definition of "defense base" to include specified military installations for the purpose of retaining the exemption from public property taxation until September 1, 2007. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 1558 amends the Local Government Code to expand the definition of "defense base" to include a closed military installation or facility now operated by a public technical institute and that is located in a county with a population of more than 210,000 and less than 230,000, Ellington Air Force Base, and the former Amarillo Air Force Base to exempt such bases from public property taxation until September 1, 2007. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.