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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 real property |
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used to operate a child-care facility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.36 to read as follows: |
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Sec. 11.36. CHILD-CARE FACILITIES. (a) In this section: |
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(1) "Child-care facility" means a facility licensed by |
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the Health and Human Services Commission to provide assessment, |
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care, training, education, custody, treatment, or supervision for a |
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child who is not related by blood, marriage, or adoption to the |
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owner or operator of the facility, for all or part of the 24-hour |
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day, whether or not the facility is operated for profit or charges |
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for the services it offers. |
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(2) "Qualifying child-care facility" means a |
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child-care facility that is accredited by a nationally recognized |
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accrediting organization for child-care or early childhood |
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education facilities or programs approved by the Texas Workforce |
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Commission and the Department of Family and Protective Services as |
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applying criteria for accreditation adequate to ensure the quality |
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of an accredited facility or program, such as the National |
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Association for the Education of Young Children or the National |
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Early Childhood Program Accreditation Commission. |
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(b) Subject to Subsection (c), a person is entitled to an |
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exemption from taxation of: |
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(1) the real property the person owns and operates as a |
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qualifying child-care facility; or |
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(2) the portion of the real property that the person |
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owns and leases to a person who uses the property to operate a |
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qualifying child-care facility. |
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(c) To qualify for the exemption authorized by this section, |
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the property must be: |
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(1) except as provided by Subsection (d), used |
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exclusively to provide developmental and educational services for |
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children attending the child-care facility; and |
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(2) reasonably necessary for the operation of the |
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child-care facility. |
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(d) The use of exempt property for functions other than |
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providing developmental and educational services for children |
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attending the child-care facility located on the property does not |
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result in the loss of an exemption authorized by this section if |
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those other functions are incidental to the use of the property for |
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providing those services to those children and benefit: |
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(1) those children; or |
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(2) the staff and faculty of the facility. |
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(e) A person who claims an exemption under Subsection (b)(2) |
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must include with the application for the exemption an affidavit |
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certifying to the chief appraiser for the appraisal district that |
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appraises the property that is the subject of the application that: |
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(1) the person has provided to the child-care facility |
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to which the property is leased a disclosure document stating the |
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amount by which the taxes on the property are reduced as a result of |
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the exemption and the method the person will implement to ensure |
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that the rent charged for the lease of the property fully reflects |
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that reduction; and |
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(2) the rent charged for the lease of the property |
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reflects the reduction in the amount of taxes on the property |
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resulting from the exemption through a monthly or annual credit |
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against the rent. |
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(f) Property is not ineligible for an exemption under this |
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section if a portion of the property is used for functions other |
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than those described by Subsections (c) and (d). However, the |
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exemption does not apply to the value of the portion of the property |
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that is used for those other functions. |
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(g) Section 25.07 does not apply to a leasehold interest in |
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property for which the owner receives an exemption under this |
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section. |
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(h) The comptroller may adopt rules and forms necessary for |
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the administration of this section. |
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SECTION 2. Section 11.43(c), Tax Code, is amended to read as |
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follows: |
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(c) An exemption provided by Section 11.13, 11.131, 11.132, |
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11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, |
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11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, |
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11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or |
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11.36, once allowed, need not be claimed in subsequent years, and |
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except as otherwise provided by Subsection (e), the exemption |
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applies to the property until it changes ownership or the person's |
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qualification for the exemption changes. However, except as |
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provided by Subsection (r), the chief appraiser may require a |
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person allowed one of the exemptions in a prior year to file a new |
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application to confirm the person's current qualification for the |
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exemption by delivering a written notice that a new application is |
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required, accompanied by an appropriate application form, to the |
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person previously allowed the exemption. If the person previously |
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allowed the exemption is 65 years of age or older, the chief |
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appraiser may not cancel the exemption due to the person's failure |
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to file the new application unless the chief appraiser complies |
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with the requirements of Subsection (q), if applicable. |
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SECTION 3. 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 4. This Act takes effect January 1, 2024, but only |
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if the constitutional amendment proposed by the 88th Legislature, |
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Regular Session, 2023, authorizing the legislature to exempt from |
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ad valorem taxation real property used to operate a child-care |
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facility is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |