Enrolled Bill Summary

House Bill 2416 amends provisions of the Tax Code relating to the exemption of land from ad valorem taxation. The bill extends the period for which an incomplete improvement on property that is owned by certain nonprofit organizations may be exempt from taxation from not more than three years to not more than five years. The five-year extension period, effective January 1, 2003, reverts to a three-year extension period January 1, 2006. The bill provides that the sanctions of additional taxes and interest that apply to open-space land that is converted and loses its tax-exempt status do not apply to open-space land that, within five years, is converted back to a tax-exempt status by a charitable organization to provide housing and related services to a retirement community.