Terms Used In Texas Tax Code 23.135

  • Contract: A legal written agreement that becomes binding when signed.
  • Possessory interest: means an interest that exists as a result of possession or exclusive use or a right to possession or exclusive use of a property and that is unaccompanied by ownership of a fee simple or life estate in the property. See Texas Tax Code 1.04

A license to occupy a dwelling unit in a retirement community that is exempt from taxation under § 11.18(d)(19) is not a taxable leasehold or other possessory interest in real property regardless of whether the occupant of the dwelling unit is required to pay a refundable or nonrefundable deposit or a periodic service fee under the contract granting the occupant the license to occupy the dwelling unit.