BILL ANALYSIS


                                                        H.B. 2613
                                          By: Craddick (Montford)
                                                          Finance
                                                          5-18-95
                              Senate Committee Report (Unamended)
BACKGROUND

Current law exempts property owned and used as an actual place of
worship by religious organizations.  Section 11.20(a)(5) provides
for the exemption of an incomplete improvement that is under active
construction or other physical preparation and that is designed and
intended to be used by a religious organization as a place of
religious worship when complete.  In certain cases, however, a
religious organization will acquire land late in the year. 
Although significant planning and preparation activities required
to establish the facilities are initiated and/or completed at the
time of the land purchase, the late-year acquisition makes it
impossible for actual construction activities to commence by
January 1, the date at which qualification for exemption is
determined.
 
PURPOSE

As proposed, H.B. 2613 clarifies certain activities necessary to be
considered "an incomplete improvement under physical preparation"
for tax exemption for religious organization.
 
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 11.20, Tax Code, by adding Subsection
(g), to provide that an incomplete improvement is under physical
preparation if the religious organization has engaged in
architectural or engineering work, soil testing, land clearing
activities, or site improvement work necessary for the construction
of the improvement or has conducted an environmental or land use
study relating to the construction of the improvement.

SECTION 2. Emergency clause.
           Effective date:  upon passage.