BILL ANALYSIS H.B. 1434 By: Hochberg (Sponsor) Finance 05-10-95 Senate Committee Report (Unamended) BACKGROUND Current law exempts all real and personal property owned by a nonprofit corporation from all ad valorem taxation that is held for use in the development of a medical center. The Texas Medical Center currently holds over 30 properties for use in developing the Texas Medical Center campus in Houston and for which it must annually apply for an exemption separately for each property. Furthermore, current law lists several exemptions that once allowed, need not be claimed in subsequent years unless ownership changes or the criteria for the exemption are no longer met. If this treatment were extended for medical center property, those resources the medical centers use for the administrative duties of annual exemption filing could be directed to other purposes. PURPOSE As proposed, H.B. 1434 adds property that is held by a nonprofit corporation for use in the development of a medical center to the list of ad valorem tax exemptions that do not require annual applications. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.43(c), Tax Code, by adding Section 11.23(j), which exempts from all ad valorem taxation, property that is held by a nonprofit corporation for use in the development of a medical center, to the list of exemptions that do not require annual applications. Makes a nonsubstantive change. SECTION 2. Effective date: January 1, 1996. SECTION 3. Emergency clause.