|
House Bill 2555 |
House Author: Hilderbran et al. |
|
Effective: See below |
Senate Sponsor: Ogden |
House Bill 2555 amends the Tax Code to extend the period of a property tax exemption, applicable to real property that is owned by a charitable organization for the purpose of building or repairing housing on the property with volunteer labor and that is sold without profit to low-income individuals or families, from the third anniversary of the date the organization acquires the property to the fifth anniversary of that date.
The bill repeals a provision that makes the property tax exemption for an organization engaged primarily in performing charitable functions, for buildings and certain real property and tangible personal property, contingent on adoption of the amendment by the governing body or the voters of a taxing unit. The bill entitles a corporation that is not such a charitable organization to the exemption if the corporation is exempt from federal income taxation as a 501(c)(2) organization, if the corporation holds title to and collects income from the property for a charitable organization and conveys that income less expenses to the organization, and if the charitable organization would otherwise qualify for the exemption if it owned the property. The bill establishes requirements under which the charitable organization must first obtain a determination from the comptroller of public accounts that the corporation qualifies, and the corporation must apply to the comptroller for the exemption. In order for a corporation to continue to receive such an exemption after the fifth tax year following the year the exemption is granted, the charitable organization must obtain a new determination and the corporation must reapply for the exemption.
Except for the repeal and provisions of the bill relating to the exemption for a qualified corporation or charitable organization, which take effect January 1, 2010, the bill takes effect June 19, 2009, but only if a specific appropriation for the implementation of the bill is provided in a general appropriations act of the 81st Legislature.