Enrolled Bill Summary

            A school, charitable organization, religious organization, or youth development association that receives a property tax exemption was required by previous law to pledge its assets by charter, bylaw, or other regulation toward the performance of its basic function. This requirement created conflict if a lender required a second pledge of assets as collateral, resulting in a double pledging. House Bill 2383 amends the Tax Code to require a use of assets, rather than a pledge of assets, to qualify for the exemption. The act revises and standardizes, for entities that do not satisfy the charter, bylaw, or regulation requirement as of the beginning of the tax year, the deadlines for taking late corrective measures to comply with the requirement. It provides that in the event of conflict between a contract with the federal government and the entity's charter, bylaw, or other regulation, the contract prevails but does not affect the entity's exemption eligibility. The act renews, to the end of 1997, provisions for late applications for religious organization exemptions and clarifies a 1995 law relieving a religious organization from rollback taxes in certain circumstances. It authorizes, beginning with the 1997 tax year, a school exemption for certain property that is acquired for use as a school but that continues to be used temporarily by a former owner who was entitled to a tax exemption.