Relating to removing certain tax exemptions for leasehold or other possessory interests in public facilities granted by public facility corporations.

SB 2259 removes tax exemptions for leasehold or possessory interests in public facilities owned by public facility corporations, specifically targeting multifamily residential developments. It eliminates the previous tax treatment that allowed such leaseholds to be treated like those under Section 379B.011(b) and ends the sales/use tax exemption for materials used to improve these properties. The bill applies to ad valorem taxes for tax years starting on or after September 1, 2025, directly affecting public facility corporations and their lessees in multifamily housing.