The bill, H.B. No. 3291, amends the Local Government Code by adding a new section that designates certain projects of Type A economic development corporations as serving a public purpose. Specifically, it states that projects authorized under Chapter 501 are considered owned, used, and held for public purposes on behalf of the municipality that created the Type A corporation. Furthermore, it clarifies that certain sections of the law regarding taxation do not apply to leasehold or possessory interests granted by these corporations while they own projects for the municipality.

Additionally, the bill provides an exemption from ad valorem taxation for these projects, as outlined in the new section. This exemption applies for a specified period, which is defined in the bill. The provisions of this act will only affect ad valorem taxes imposed for tax years beginning on or after the act's effective date of September 1, 2025.

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