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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from ad valorem taxation of certain |
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royalty interests owned by a charitable organization. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.18(a), Tax Code, is amended to read as |
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follows: |
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(a) An organization that qualifies as a charitable |
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organization as provided by this section is entitled to an |
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exemption from taxation of: |
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(1) the buildings and tangible personal property that: |
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(A) are owned by the charitable organization; and |
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(B) except as permitted by Subsection (b), are |
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used exclusively by qualified charitable organizations; [and] |
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(2) the real property owned by the charitable |
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organization consisting of: |
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(A) an incomplete improvement that: |
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(i) is under active construction or other |
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physical preparation; and |
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(ii) is designed and intended to be used |
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exclusively by qualified charitable organizations; and |
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(B) the land on which the incomplete improvement |
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is located that will be reasonably necessary for the use of the |
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improvement by qualified charitable organizations; and |
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(3) a royalty interest, as defined by Section 201.001, |
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owned by the organization. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2024. |