By:  Odgen                                            H.B. No. 1096
       73R1855 CAS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to exempting from ad valorem taxation property owned by
    1-3  certain charitable organizations.
    1-5        SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
    1-6  adding Section 11.181 to read as follows:
    1-8  LOW-INCOME HOUSING.  (a)  An organization is entitled to an
    1-9  exemption from taxation of improved or unimproved real property it
   1-10  owns if the organization:
   1-11              (1)  meets the requirements of a charitable
   1-12  organization provided by Sections 11.18(e) and (f);
   1-13              (2)  owns the property for the purpose of building or
   1-14  repairing housing on the property primarily with volunteer labor to
   1-15  sell without profit or down payment to an individual or family
   1-16  satisfying the organization's low-income and other eligibility
   1-17  requirements; and
   1-18              (3)  engages exclusively in the building, repair, and
   1-19  sale of housing as described by Subdivision (2), and related
   1-20  activities.
   1-21        (b)  Property may not be exempted under Subsection (a) after
   1-22  the third anniversary of the date the organization acquires the
   1-23  property.
   1-24        (c)  An organization entitled to an exemption under
    2-1  Subsection (a) is also entitled to an exemption from taxation of
    2-2  any building or tangible personal property the organization owns
    2-3  and uses in the administration of its acquisition, building,
    2-4  repair, or sale of property.  To qualify for an exemption under
    2-5  this subsection, property must be used exclusively by the
    2-6  charitable organization, except that another individual or
    2-7  organization may use the property for activities incidental to the
    2-8  charitable organization's use that benefit the beneficiaries of the
    2-9  charitable organization.
   2-10        SECTION 2.  Section 11.42(a), Tax Code, is amended to read as
   2-11  follows:
   2-12        (a)  Except as provided by Subsection (b) <of this section>
   2-13  and by Sections 11.421, 11.422, 11.434, <and> 11.435, and 11.436
   2-14  <of this code>, eligibility for and amount of an exemption
   2-15  authorized by this chapter for any tax year are determined by a
   2-16  claimant's qualifications on January 1.  A person who does not
   2-17  qualify for an exemption on January 1 of any year may not receive
   2-18  the exemption that year.
   2-19        SECTION 3.  Subchapter C, Chapter 11, Tax Code, is amended by
   2-20  adding Section 11.436 to read as follows:
   2-22  USED FOR LOW-INCOME HOUSING.  (a)  An organization that acquires
   2-23  property that qualifies for an exemption under Section 11.181(a)
   2-24  may apply for the exemption for the year of acquisition not later
   2-25  than the 30th day after the date the organization acquires the
   2-26  property, and the deadline provided by Section 11.43(d) does not
   2-27  apply to the application for that year.
    3-1        (b)  If the application is granted, the exemption for that
    3-2  year applies only to the portion of the year in which the property
    3-3  qualifies for the exemption, as provided by Section 26.111.  If the
    3-4  application is granted after approval of the appraisal records by
    3-5  the appraisal review board, the chief appraiser shall notify the
    3-6  collector for each taxing unit in which the property is located.
    3-7  The collector shall calculate the amount of tax due on the property
    3-8  in that year as provided by Section 26.111 and shall refund any
    3-9  amount paid in excess of that amount.
   3-10        SECTION 4.  Chapter 26, Tax Code, is amended by adding
   3-11  Section 26.111 to read as follows:
   3-13  ORGANIZATION.  (a)  If an organization acquires taxable property
   3-14  that qualifies for and is granted an exemption under
   3-15  Section 11.181(a) for the year in which the property was acquired,
   3-16  the amount of tax due on the property for that year is calculated
   3-17  by multiplying the amount of taxes imposed on the property for the
   3-18  entire year as provided by Section 26.09 by a fraction, the
   3-19  denominator of which is 365 and the numerator of which is the
   3-20  number of days in that year before the date the charitable
   3-21  organization acquired the property.
   3-22        (b)  If the exemption terminates during the year of
   3-23  acquisition, the tax due is calculated by multiplying the taxes
   3-24  imposed for the entire year as provided by Section 26.09 by a
   3-25  fraction, the denominator of which is 365 and the numerator of
   3-26  which is the number of days the property does not qualify for the
   3-27  exemption.
    4-1        SECTION 5.  This Act takes effect January 1, 1994.
    4-2        SECTION 6.  The importance of this legislation and the
    4-3  crowded condition of the calendars in both houses create an
    4-4  emergency   and   an   imperative   public   necessity   that   the
    4-5  constitutional rule requiring bills to be read on three several
    4-6  days in each house be suspended, and this rule is hereby suspended.