BILL ANALYSIS



S.B. 428
By: Galloway (Brady)
May 12, 1995
Committee Report (Amended)

BACKGROUND

Subchapter B, Chapter 11 of the Tax Code provides for exemptions
from property taxation.  Charitable organizations, as defined by
Section 11.18(d)(5) are granted an exemption from ad valorem
taxation if the charitable organization is engaged in the promotion
or operation of a theater of dramatic arts, a symphony orchestra or
a choir.  Since the performing arts are not specifically listed in
this statute, it is unclear if a charitable organization engaging
in the promotion and operation of the performing arts in addition
to the dramatic arts, a symphony orchestra, or a choir is eligible
for tax exempt status under Section 11.18(d).

PURPOSE

As proposed, S.B. 428 creates a tax exemption for a charitable
organization that promotes or operates a performing arts theater as
a charitable function.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.18 (Charitable Organizations),
Subsection (d), Tax Code, by adding language that will include
theaters of the performing arts, that are promoted or operated by
a charitable organization, to the list of charitable organizations
whose property is exempt from ad valorem taxation.

SECTION 2. Effective date: January 1, 1996.

SECTION 3. Emergency clause.

EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT #1 would exempt qualified religious
organizations from the rollback tax provisions of Section 23.55
(Change of Use of Land) if the land is eligible for an exemption
under Section 11.20 (Religious Organizations).

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on May 9, 1995.  The committee considered S.B.
428, and Representative Brady explained the bill.  The committee
considered committee amendment #1 by Representative Place.  By a
record vote of 1 aye, 5 nays, 0 present not voting and 5 absent,
amendment #1 failed adoption.  The committee considered committee
amendment #2 by Representative Marchant.  Representative Swinford
testified in favor of the amendment.  Without objection, committee
amendment #2 was adopted.  By a record vote of 6 ayes, 0 nays, 0
present not voting and 5 absent, the committee voted to report S.B.
428 to the House with amendment with the recommendation that it be
sent to the Local and Consent Calendar and that it do pass.

     Testimony received in favor of the bill:
           Bob Stout, representing Mitchell Energy & Development
Corp.