Tex. Codes » Tax Code · TITLE 1. PROPERTY TAX CODE · SUBTITLE D. APPRAISAL AND ASSESSMENT · CHAPTER 25. LOCAL APPRAISAL
Texas Codes

Tex. Tax Code § 25.07 (2026)

Leasehold And Other Possessory Interests In Exempt Property

✓ current as of May 2026
Find cases: SyfertCases citing this section TX-LEGstatutes.capitol.texas.gov Justiaon Justia CornellLII Search CasesGoogle Scholar

Sec. 25.07. LEASEHOLD AND OTHER POSSESSORY INTERESTS IN EXEMPT PROPERTY. (a) Except as provided by Subsection (b) of this section, a leasehold or other possessory interest in real property that is exempt from taxation to the owner of the estate or interest encumbered by the possessory interest shall be listed in the name of the owner of the possessory interest if the duration of the interest may be at least one year.

(b) Except as provided by Sections 11.11(b) and (c), a leasehold or other possessory interest in exempt property may not be listed if:

(1) the property is permanent university fund land;

(2) the property is county public school fund agricultural land;

(3) the property is a part of a public transportation facility owned by a municipality or county and:

(A) is an airport passenger terminal building or a building used primarily for maintenance of aircraft or other aircraft services, for aircraft equipment storage, or for air cargo;

(B) is an airport fueling system facility;

(C) is in a foreign-trade zone:

(i) that has been granted to a joint airport board under Subchapter C, Chapter 681, Business & Commerce Code;

(ii) the area of which in the portion of the zone located in the airport operated by the joint airport board does not exceed 2,500 acres; and

(iii) that is established and operating pursuant to federal law; or

(D)(i) is in a foreign trade zone established pursuant to federal law after June 1, 1991, that operates pursuant to federal law;

(ii) is contiguous to or has access via a taxiway to an airport located in two counties, one of which has a population of 500,000 or more according to the federal decennial census most recently preceding the establishment of the foreign trade zone; and

(iii) is owned, directly or through a corporation organized under the Development Corporation Act (Subtitle C1, Title 12, Local Government Code), by the same municipality that owns the airport;

(4) the interest is in a part of:

(A) a park, market, fairground, or similar public facility that is owned by a municipality; or

(B) a convention center, visitor center, sports facility with permanent seating, concert hall, arena, or stadium that is owned by a municipality as such leasehold or possessory interest serves a governmental, municipal, or public purpose or function when the facility is open to the public, regardless of whether a fee is charged for admission;

(5) the interest involves only the right to use the property for grazing or other agricultural purposes;

(6) the property is:

(A) owned by a municipality, a public port, or a navigation district created or operating under Section 59, Article XVI, Texas Constitution, or under a statute enacted under Section 59, Article XVI, Texas Constitution; and

(B) used as an aid or facility incidental to or useful in the operation or development of a port or waterway or in aid of navigation-related commerce; or

(7) the property is part of a rail facility owned by a rural rail transportation district operating under Chapter 172, Transportation Code.

(c) Subsection (a) does not apply to:

(1) any portion of a facility owned by the Texas Department of Transportation that is a rail facility or system or is a highway in the state highway system and that is licensed or leased to a private entity by that department under Chapter 91 or 223, Transportation Code; or

(2) a leasehold or other possessory interest granted by the Texas Department of Transportation in a facility owned by that department that is a rail facility or system or is a highway in the state highway system.

(d) For purposes of Subsection (b)(6)(B) of this section, property is used as an aid or facility incidental to or useful in the operation or development of a port or waterway or in aid of navigation-related commerce if the property:

(1) is leased to a person:

(A) engaged in the business of navigation-related commerce; or

(B) for a purpose described by Section 60.101, 61.162, or 63.153, Water Code, or for the placement on the property of an improvement described by those sections;

(2) is located:

(A) adjacent to a federal navigation project; or

(B) in a foreign trade zone established and operated under federal law; or

(3) includes part of a rail facility that serves the tenants and users of the port or waterway.

(e) In this section, "navigation-related commerce" includes the following if engaged in by a person:

(1) an activity that requires the person to hold a maritime-related license or permit issued by a navigation district, including providing stevedoring, steamship agency, towing, tugboat, or line handling services;

(2) an activity that requires the person to hold a franchise issued by a navigation district;

(3) possessing a leasehold interest in property owned by a navigation district that connects infrastructure to a public dock;

(4) hauling cargo into or across a public dock;

(5) commercial fishing;

(6) constructing, fabricating, cleaning, repairing, dismantling, or recycling vessels;

(7) pilotage; or

(8) an activity described by Section 60.101, 61.162, or 63.153, Water Code.

Acts 1979, 66th Leg., p. 2270, ch. 841, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1981, 67th Leg., p. 2615, ch. 700, Sec. 1, eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 157, ch. 13, Sec. 99, eff. Jan. 1, 1982; Acts 1989, 71st Leg., ch. 534, Sec. 7, eff. Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 582, Sec. 18, eff. Sept. 1, 1991; Acts 1991, 72nd Leg., ch. 763, Sec. 2, eff. Jan. 1, 1992; Acts 1997, 75th Leg., ch. 829, Sec. 1, eff. Jan. 1, 1998; Acts 2001, 77th Leg., ch. 1127, Sec. 1, eff. Aug. 27, 2001.

Amended by:

Acts 2005, 79th Leg., Ch. 281 (H.B. 2702), Sec. 2.97, eff. June 14, 2005.

Acts 2007, 80th Leg., R.S., Ch. 609 (H.B. 387), Sec. 7, eff. June 15, 2007.

Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.36, eff. April 1, 2009.

Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.70, eff. April 1, 2009.

Acts 2007, 80th Leg., R.S., Ch. 1169 (H.B. 316), Sec. 1, eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch. 85 (S.B. 1540), Sec. 4.11, eff. April 1, 2011.

Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 22.004, eff. September 1, 2009.

Acts 2011, 82nd Leg., R.S., Ch. 259 (H.B. 1201), Sec. 3, eff. June 17, 2011.

Acts 2021, 87th Leg., R.S., Ch. 878 (S.B. 1315), Sec. 1, eff. September 1, 2021.

Notes of Decisions
Cited in 16 cases (2 in the last 5 years), 1990–2024 · leading case: Gables Realty Ltd. P'ship v. Travis Cent. Appraisal Dist., 81 S.W.3d 869 (Tex. App. 2002).
Sort: Relevance Newest Treatment
Gables Realty Ltd. P'ship v. Travis Cent. Appraisal Dist., 81 S.W.3d 869 (Tex. App. 2002). · cites it 3× “Tex. Tax Code Ann. § 25.07 (a). The parties stipulated for summary judgment purposes that, prior to Gables Realty’s lease agreements, the properties were tax exempt in the hands of their respective owners.”
Travis Cent. Appraisal Dist. v. Signature Flight Support Corp., 140 S.W.3d 833 (Tex. App. 2004). · cites it 2× “See Tex. Tax Code Ann. § 25.07 (West 2001); see also id.”
Cherokee Water Co. v. Gregg Cnty. Appraisal Dist., 801 S.W.2d 872 (Tex. 1990). · cites it 2× “" Tex.Tax Code Ann. § 25.06 (Vernon 1982). Section 25.”
Cnty. of Dallas Tax Collector v. Roman Catholic Diocese of Dallas, 41 S.W.3d 739 (Tex. App. 2001). · cites it 2× “The trial court provided the following basis for its judgment: [T]he court is of the opinion that the motion should be granted on the grounds that under Texas Tax Code §§ 25.07 and 32.07, the Diocese as the owner of property leased to another party for a term of more than one…”
Panola Cnty. Appraisal Review Bd. v. Pepper, 936 S.W.2d 10 (Tex. App. 1996). · cites it 2× “The sole question on this appeal is whether TexTax Code Ann. § 25.07 (Vernon 1992) permits the taxation of a leasehold estate in exempt property in the name of the owner of the lease where the lease agreement provides for an initial term of six months, but contains provisions…”
Dallas Cent. Appraisal Dist. v. Jagee Corp., 812 S.W.2d 49 (Tex. App. 1991). “" Tex.Tax Code Ann. § 25.07(a) (Vernon 1982).”
Tarrant Appraisal Dist. v. Am. Airlines, Inc., 826 S.W.2d 767 (Tex. App. 1992). “Because a statute is to be construed to give meaning to all its parts, some meaning must have been intended by the distinction between the two, and we hold that reason was as stated above, to broaden the types of possessory interests which may be taxed, not to change the method…”
Hunt Cnty. Appraisal Dist. v. Lake Tawakoni Wind Point Park Corp. (Tex. App. 2024). · cites it 3× “at 875 (citing TEX. TAX CODE ANN. § 25.07). Here, it is undisputed that the fee estate, belonging to Sabine, is exempt under Section 11.”
ICAN Enter., Inc., Dba ICAN Aviation Michael Zucker, President & Naomi Zucker, Vice President v. Williamson Cnty. Appraisal Dist. & Williamson Cnty. Appraisal Review Bd. (Tex. App. 2009). · cites it 5× “Tex. Tax Code Ann. § 25.07 (a) (West 2008).”
ICAN Enter., Inc., Dba ICAN Aviation Michael Zucker, President & Naomi Zucker, Vice President v. Williamson Cnty. Appraisal Dist. & Williamson Cnty. Appraisal Review Bd. (Tex. App. 2009). · cites it 5× “Tex. Tax Code Ann. § 25.07 (a) (West 2008).”
Untitled Texas Attorney Gen. Opinion (Tex. Att'y Gen. 2010). · cites it 4× “2010) (exempting taxable leasehold interest from listing requirement if the property is part of a "public transportation facility" and meets other specified requirements).”
Gables Realty Ltd. P'ship v. Travis Cent. Appraisal Dist. (Tex. App. 2002). · cites it 3× “Tex. Tax Code Ann. § 25.07 (a). The parties stipulated for summary judgment purposes that, prior to Gables Realty's lease agreements, the properties were tax exempt in the hands of their respective owners.”
Show all 16 citing cases →
— Tex. Tax Code § 25.07(a) — 7 cases
Cnty. of Dallas Tax Collector v. Roman Catholic Diocese of Dallas, 41 S.W.3d 739 (Tex. App. 2001). “The trial court provided the following basis for its judgment: [T]he court is of the opinion that the motion should be granted on the grounds that under Texas Tax Code §§ 25.07 and 32.07, the Diocese as the owner of property leased to another party for a term of more than one…”
Dallas Cent. Appraisal Dist. v. Jagee Corp., 812 S.W.2d 49 (Tex. App. 1991). “" Tex.Tax Code Ann. § 25.07(a) (Vernon 1982).”
Panola Cnty. Appraisal Review Bd. v. Pepper, 936 S.W.2d 10 (Tex. App. 1996). “The sole question on this appeal is whether TexTax Code Ann. § 25.07 (Vernon 1992) permits the taxation of a leasehold estate in exempt property in the name of the owner of the lease where the lease agreement provides for an initial term of six months, but contains provisions…”
Hunt Cnty. Appraisal Dist. v. Lake Tawakoni Wind Point Park Corp. (Tex. App. 2024). “at 875 (citing TEX. TAX CODE ANN. § 25.07). Here, it is undisputed that the fee estate, belonging to Sabine, is exempt under Section 11.”
Untitled Texas Attorney Gen. Opinion: KP-0437 (Tex. Att'y Gen. 2023).
— Tex. Tax Code § 25.07(b)(3) — 1 case
Untitled Texas Attorney Gen. Opinion (Tex. Att'y Gen. 2010). “2010) (exempting taxable leasehold interest from listing requirement if the property is part of a "public transportation facility" and meets other specified requirements).”
— Tex. Tax Code § 25.07(b)(3)(A) — 1 case
Untitled Texas Attorney Gen. Opinion (Tex. Att'y Gen. 2010). “2010) (exempting taxable leasehold interest from listing requirement if the property is part of a "public transportation facility" and meets other specified requirements).”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.