BILL ANALYSIS

H.B. 1197

By: Metcalf

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

While state law allows a religious organization to claim a property tax exemption on contiguous land purchased for the expansion of the organization's place of regular worship, the exemption may only be claimed for a maximum of six years. Concerns have been raised that this time limit can present an undue burden for some smaller congregations that lack resources and face significant hurdles in raising the funds necessary to actually begin the expansion process. H.B. 1197 seeks to address this issue by extending this exemption period from six years to 10 years.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1197 amends the Tax Code to extend from six years to 10 years the maximum property tax exemption period for a tract of land that is owned by a religious organization for purposes of expanding or constructing a new place of regular religious worship and that is contiguous to the tract of land on which the organization's place of regular religious worship is located.     

EFFECTIVE DATE

January 1, 2022.