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.