| |
| |
| |
|
|
AN ACT
|
|
|
relating to a local option exemption from ad valorem taxation by a |
|
|
county or municipality of all or part of the appraised value of real |
|
|
property used to operate a child-care facility. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
|
|
adding Section 11.36 to read as follows: |
|
|
Sec. 11.36. CHILD-CARE FACILITIES. (a) In this section: |
|
|
(1) "Child-care facility" means a facility licensed by |
|
|
the Health and Human Services Commission to provide assessment, |
|
|
care, training, education, custody, treatment, or supervision for a |
|
|
child who is not related by blood, marriage, or adoption to the |
|
|
owner or operator of the facility, for all or part of the 24-hour |
|
|
day, whether or not the facility is operated for profit or charges |
|
|
for the services it offers. |
|
|
(2) "Qualifying child-care facility" means a |
|
|
child-care facility: |
|
|
(A) the owner or operator of which participates |
|
|
in the Texas Workforce Commission's Texas Rising Star Program as |
|
|
described by Section 2308.3155, Government Code, for that facility; |
|
|
and |
|
|
(B) at which at least 20 percent of the total |
|
|
number of children enrolled at the facility receive subsidized |
|
|
child-care services provided through the child-care services |
|
|
program administered by the Texas Workforce Commission. |
|
|
(b) Subject to Subsection (d), if the governing body of a |
|
|
county or municipality in the manner required by law for official |
|
|
action by the governing body adopts the exemption, a person is |
|
|
entitled to an exemption from taxation by the county or |
|
|
municipality of all or part of the appraised value of: |
|
|
(1) the real property the person owns and operates as a |
|
|
qualifying child-care facility; or |
|
|
(2) the portion of the real property that the person |
|
|
owns and leases to a person who uses the property to operate a |
|
|
qualifying child-care facility. |
|
|
(c) The governing body of a county or municipality may adopt |
|
|
the exemption authorized by this section as a percentage of the |
|
|
appraised value of the property. The percentage specified by the |
|
|
governing body may not be less than 50 percent. |
|
|
(d) To qualify for the exemption authorized by this section, |
|
|
the property must be: |
|
|
(1) except as provided by Subsection (e), used |
|
|
exclusively to provide developmental and educational services for |
|
|
children attending the child-care facility; and |
|
|
(2) reasonably necessary for the operation of the |
|
|
child-care facility. |
|
|
(e) The use of exempt property for functions other than |
|
|
providing developmental and educational services for children |
|
|
attending the child-care facility located on the property does not |
|
|
result in the loss of an exemption authorized by this section if |
|
|
those other functions are incidental to the use of the property for |
|
|
providing those services to those children and benefit: |
|
|
(1) those children; or |
|
|
(2) the staff and faculty of the facility. |
|
|
(f) A person who claims an exemption under Subsection (b)(2) |
|
|
must include with the application for the exemption an affidavit |
|
|
certifying to the chief appraiser for the appraisal district that |
|
|
appraises the property that is the subject of the application that: |
|
|
(1) the person has provided to the child-care facility |
|
|
to which the property is leased a disclosure document stating the |
|
|
amount by which the taxes on the property are reduced as a result of |
|
|
the exemption and the method the person will implement to ensure |
|
|
that the rent charged for the lease of the property fully reflects |
|
|
that reduction; |
|
|
(2) the rent charged for the lease of the property |
|
|
reflects the reduction in the amount of taxes on the property |
|
|
resulting from the exemption through a monthly or annual credit |
|
|
against the rent; and |
|
|
(3) the person does not charge rent for the lease of |
|
|
the property in an amount that exceeds: |
|
|
(A) for property that consists of space in a |
|
|
commercial property, the rent charged by the person to other |
|
|
tenants of the commercial property for similar space; or |
|
|
(B) for property other than property described by |
|
|
Paragraph (A), the average rent charged for comparable rental |
|
|
property. |
|
|
(g) Notwithstanding any other provision of this section, a |
|
|
person may not claim an exemption under Subsection (b)(2) for |
|
|
property: |
|
|
(1) for which the person claims an exemption under |
|
|
Section 11.13; or |
|
|
(2) any part of which is leased by the person to |
|
|
another person for use as a principal residence. |
|
|
(h) Property is not ineligible for an exemption under this |
|
|
section if a portion of the property is used for functions other |
|
|
than those described by Subsections (d) and (e). However, the |
|
|
exemption does not apply to the value of the portion of the property |
|
|
that is used for those other functions. |
|
|
(i) Section 25.07 does not apply to a leasehold interest in |
|
|
property for which the owner receives an exemption under this |
|
|
section. |
|
|
(j) The comptroller may adopt rules and forms necessary for |
|
|
the administration of this section. |
|
|
SECTION 2. Section 11.43(c), Tax Code, is amended to read as |
|
|
follows: |
|
|
(c) An exemption provided by Section 11.13, 11.131, 11.132, |
|
|
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, |
|
|
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, |
|
|
11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or |
|
|
11.36, once allowed, need not be claimed in subsequent years, and |
|
|
except as otherwise provided by Subsection (e), the exemption |
|
|
applies to the property until it changes ownership or the person's |
|
|
qualification for the exemption changes. However, except as |
|
|
provided by Subsection (r), the chief appraiser may require a |
|
|
person allowed one of the exemptions in a prior year to file a new |
|
|
application to confirm the person's current qualification for the |
|
|
exemption by delivering a written notice that a new application is |
|
|
required, accompanied by an appropriate application form, to the |
|
|
person previously allowed the exemption. If the person previously |
|
|
allowed the exemption is 65 years of age or older, the chief |
|
|
appraiser may not cancel the exemption due to the person's failure |
|
|
to file the new application unless the chief appraiser complies |
|
|
with the requirements of Subsection (q), if applicable. |
|
|
SECTION 3. This Act applies only to ad valorem taxes imposed |
|
|
for a tax year beginning on or after the effective date of this Act. |
|
|
SECTION 4. This Act takes effect January 1, 2024, but only |
|
|
if the constitutional amendment proposed by the 88th Legislature, |
|
|
Regular Session, 2023, authorizing a local option exemption from ad |
|
|
valorem taxation by a county or municipality of all or part of the |
|
|
appraised value of real property used to operate a child-care |
|
|
facility is approved by the voters. If that amendment is not |
|
|
approved by the voters, this Act has no effect. |
|
|
|
|
|
|
| |
| |
| |
| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
|
|
I hereby certify that S.B. No. 1145 passed the Senate on |
|
|
May 1, 2023, by the following vote: Yeas 25, Nays 6. |
|
|
|
| |
| |
______________________________ |
| |
Secretary of the Senate |
| |
|
|
I hereby certify that S.B. No. 1145 passed the House on |
|
|
May 16, 2023, by the following vote: Yeas 109, Nays 33, |
|
|
one present not voting. |
|
|
|
| |
| |
______________________________ |
| |
Chief Clerk of the House |
| |
|
|
|
| |
|
|
Approved: |
|
|
|
|
|
______________________________ |
|
|
Date |
|
|
|
|
|
|
|
|
______________________________ |
|
|
Governor |