Relating to the public purpose designation and taxation of certain projects of Type A economic development corporations.

HB 3291 exempts certain projects owned by Type A economic development corporations from property taxes when held for a public purpose on behalf of the authorizing municipality. The bill amends Texas law to clarify that these projects - authorized under Chapter 501 of the Local Government Code - are not subject to ad valorem taxation during the period the corporation owns them, removing application of existing tax provisions. This directly affects Type A economic development corporations and the municipalities that created them, as it eliminates property tax liability for qualifying projects. The exemption applies only to tax years beginning on or after September 1, 2025, and does not alter other tax obligations.