BILL ANALYSIS S.B. 428 By: Galloway Finance 04-07-95 Committee Report (Unamended) BACKGROUND Currently, Chapter 11 of the Tax Code provides an ad valorem tax exemption to charitable organizations engaged in the promotion or operation of a dramatic arts theater, symphony, orchestra, or a choir. The Cynthia Woods Pavilion is a performing arts theater which is currently receiving a property tax exemption. The addition of a performing arts theater to Chapter 11 would clarify the authority of this exemption and is the only facility identified that would be affected by this change. 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 grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.18(d), Tax Code, to include, among others, the promotion or operation of a performing arts theater in the charitable functions for which a charitable organization is organized to perform. SECTION 2. Effective date: January 1, 1996. SECTION 3. Emergency clause.