88R3245 LHC-D
 
  By: Craddick, Geren, Cook, Burrows, Rose H.B. No. 456
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an exemption from ad valorem taxation of certain
  royalty interests owned by a charitable organization.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.18(a), Tax Code, is amended to read as
  follows:
         (a)  An organization that qualifies as a charitable
  organization as provided by this section is entitled to an
  exemption from taxation of:
               (1)  the buildings and tangible personal property that:
                     (A)  are owned by the charitable organization; and
                     (B)  except as permitted by Subsection (b), are
  used exclusively by qualified charitable organizations; [and]
               (2)  the real property owned by the charitable
  organization consisting of:
                     (A)  an incomplete improvement that:
                           (i)  is under active construction or other
  physical preparation; and
                           (ii)  is designed and intended to be used
  exclusively by qualified charitable organizations; and
                     (B)  the land on which the incomplete improvement
  is located that will be reasonably necessary for the use of the
  improvement by qualified charitable organizations; and
               (3)  a royalty interest, as defined by Section 201.001,
  owned by the organization.
         SECTION 2.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2024.