| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to an exemption from ad valorem taxation of real property |
|
|
owned by a charitable organization for the purpose of renting the |
|
|
property at below-market rates to low-income and moderate-income |
|
|
households. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 11.18, Tax Code, is amended by amending |
|
|
Subsection (d) and adding Subsection (r) to read as follows: |
|
|
(d) A charitable organization must be organized exclusively |
|
|
to perform religious, charitable, scientific, literary, or |
|
|
educational purposes and, except as permitted by Subsections (h) |
|
|
and (l), engage exclusively in performing one or more of the |
|
|
following charitable functions: |
|
|
(1) providing medical care without regard to the |
|
|
beneficiaries' ability to pay, which in the case of a nonprofit |
|
|
hospital or hospital system means providing charity care and |
|
|
community benefits in accordance with Section 11.1801; |
|
|
(2) providing support or relief to orphans, delinquent |
|
|
or[,] dependent[, or handicapped] children in need of residential |
|
|
care, children with disabilities in need of residential care, |
|
|
abused or battered spouses or children in need of temporary |
|
|
shelter, the impoverished, or victims of natural disaster without |
|
|
regard to the beneficiaries' ability to pay; |
|
|
(3) providing support without regard to the |
|
|
beneficiaries' ability to pay to: |
|
|
(A) elderly persons, including the provision of: |
|
|
(i) recreational or social activities; and |
|
|
(ii) facilities designed to address the |
|
|
special needs of elderly persons; or |
|
|
(B) persons with disabilities [the handicapped], |
|
|
including training and employment: |
|
|
(i) in the production of commodities; or |
|
|
(ii) in the provision of services under 41 |
|
|
U.S.C. Sections 8501-8506; |
|
|
(4) preserving a historical landmark or site; |
|
|
(5) promoting or operating a museum, zoo, library, |
|
|
theater of the dramatic or performing arts, or symphony orchestra |
|
|
or choir; |
|
|
(6) promoting or providing humane treatment of |
|
|
animals; |
|
|
(7) acquiring, storing, transporting, selling, or |
|
|
distributing water for public use; |
|
|
(8) answering fire alarms and extinguishing fires with |
|
|
no compensation or only nominal compensation to the members of the |
|
|
organization; |
|
|
(9) promoting the athletic development of boys or |
|
|
girls under the age of 18 years; |
|
|
(10) preserving or conserving wildlife; |
|
|
(11) promoting educational development through loans |
|
|
or scholarships to students; |
|
|
(12) providing halfway house services pursuant to a |
|
|
certification as a halfway house by the parole division of the Texas |
|
|
Department of Criminal Justice; |
|
|
(13) providing permanent housing and related social, |
|
|
health care, and educational facilities for persons who are 62 |
|
|
years of age or older without regard to the residents' ability to |
|
|
pay; |
|
|
(14) promoting or operating an art gallery, museum, or |
|
|
collection, in a permanent location or on tour, that is open to the |
|
|
public; |
|
|
(15) providing for the organized solicitation and |
|
|
collection for distributions through gifts, grants, and agreements |
|
|
to nonprofit charitable, education, religious, and youth |
|
|
organizations that provide direct human, health, and welfare |
|
|
services; |
|
|
(16) performing biomedical or scientific research or |
|
|
biomedical or scientific education for the benefit of the public; |
|
|
(17) operating a television station that produces or |
|
|
broadcasts educational, cultural, or other public interest |
|
|
programming and that receives grants from the Corporation for |
|
|
Public Broadcasting under 47 U.S.C. Section 396, as amended; |
|
|
(18) providing housing for low-income and |
|
|
moderate-income families, for unmarried individuals 62 years of age |
|
|
or older, for [handicapped] individuals with disabilities, and for |
|
|
families displaced by urban renewal, through the use of trust |
|
|
assets that are irrevocably and, pursuant to a contract entered |
|
|
into before December 31, 1972, contractually dedicated on the sale |
|
|
or disposition of the housing to a charitable organization that |
|
|
performs charitable functions described by Subdivision (9); |
|
|
(19) providing housing and related services to persons |
|
|
who are 62 years of age or older in a retirement community, if the |
|
|
retirement community provides independent living services, |
|
|
assisted living services, and nursing services to its residents on |
|
|
a single campus: |
|
|
(A) without regard to the residents' ability to |
|
|
pay; or |
|
|
(B) in which at least four percent of the |
|
|
retirement community's combined net resident revenue is provided in |
|
|
charitable care to its residents; |
|
|
(20) providing housing on a cooperative basis to |
|
|
students of an institution of higher education if: |
|
|
(A) the organization is exempt from federal |
|
|
income taxation under Section 501(a), Internal Revenue Code of |
|
|
1986, as amended, by being listed as an exempt entity under Section |
|
|
501(c)(3) of that code; |
|
|
(B) membership in the organization is open to all |
|
|
students enrolled in the institution and is not limited to those |
|
|
chosen by current members of the organization; |
|
|
(C) the organization is governed by its members; |
|
|
and |
|
|
(D) the members of the organization share the |
|
|
responsibility for managing the housing; |
|
|
(21) acquiring, holding, and transferring unimproved |
|
|
real property under an urban land bank demonstration program |
|
|
established under Chapter 379C, Local Government Code, as or on |
|
|
behalf of a land bank; |
|
|
(22) acquiring, holding, and transferring unimproved |
|
|
real property under an urban land bank program established under |
|
|
Chapter 379E, Local Government Code, as or on behalf of a land bank; |
|
|
(23) providing housing and related services to |
|
|
individuals who: |
|
|
(A) are unaccompanied and homeless and have a |
|
|
disabling condition; and |
|
|
(B) have been continuously homeless for a year or |
|
|
more or have had at least four episodes of homelessness in the |
|
|
preceding three years; |
|
|
(24) operating a radio station that broadcasts |
|
|
educational, cultural, or other public interest programming, |
|
|
including classical music, and that in the preceding five years has |
|
|
received or been selected to receive one or more grants from the |
|
|
Corporation for Public Broadcasting under 47 U.S.C. Section 396, as |
|
|
amended; [or] |
|
|
(25) providing, without regard to the beneficiaries' |
|
|
ability to pay, tax return preparation services and assistance with |
|
|
other financial matters; or |
|
|
(26) providing: |
|
|
(A) services as a HUD-approved housing |
|
|
counseling agency, as defined by 24 C.F.R. Section 214.3, without |
|
|
regard to the beneficiaries' ability to pay; and |
|
|
(B) rental housing to low-income and |
|
|
moderate-income households at below-market rates. |
|
|
(r) The exemption authorized by Subsection (d)(26) applies |
|
|
only to property that is: |
|
|
(1) used to provide rental housing to low-income and |
|
|
moderate-income households at below-market rates; and |
|
|
(2) located in a municipality with a population of |
|
|
200,000 or more that is located in a county on the Texas-Mexico |
|
|
border that has a population of less than 300,000. |
|
|
SECTION 2. This Act applies only to an ad valorem tax year |
|
|
that begins on or after the effective date of this Act. |
|
|
SECTION 3. This Act takes effect January 1, 2024. |