By: Turner S.B. No. 222
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.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
1-6 adding Section 11.181 to read as follows:
1-7 Sec. 11.181. CHARITABLE ORGANIZATIONS IMPROVING PROPERTY FOR
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:
2-21 Sec. 11.436. APPLICATION FOR EXEMPTION OF CERTAIN PROPERTY
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:
3-12 Sec. 26.111. PRORATING TAXES--ACQUISITION BY CHARITABLE
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.