Enrolled Bill Summary

House Bill 1278 amends the Tax Code to exempt land that is owned by a religious organization for the purpose of expanding or constructing a place of regular religious worship from ad valorem taxation if the religious organization qualifies certain other property that produces no revenue for an exemption. The exemption is limited to six years for a tract of land that is contiguous to the tract of land on which the place of regular religious worship is located and is limited to three years for a noncontiguous tract. If the land is sold by the religious organization to another person, additional taxes and interest are imposed to cover the period of the exemption. The bill also exempts from taxation real property owned by a religious organization that is leased to another person for use as a school. House Bill 1278 takes effect January 1, 2004, contingent on voter approval of a constitutional amendment proposed by House Joint Resolution 55.