BILL ANALYSIS S.B. 1654 By: Montford (Counts) May 2, 1995 Committee Report (Unamended) BACKGROUND In 1845 the Ninth Congress of the Republic of Texas declared the Grand Lodge of the Republic a body corporate and politic. Then, in 1846 the first legislature of the State of Texas again chartered what is known today as the Grand Lodge of Texas. Since the Lodge is such an established organization, many of the meeting halls that the Lodge has used over the years have become historic landmarks. However, many of the Masonic Lodges are in danger of losing their landmark buildings due to increased taxes. Lodges across the state are now devoting substantial resources to paying property taxes instead of devoting resources to charity and their communities. PURPOSE The bill exempts organizations which fit the criteria from ad valorem taxation. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.23, Tax Code, by adding Subsection (l), exempting real property from ad valorem taxation, that is owned by a continuously existing organization chartered by the Congress of the Republic of Texas. The organization is eligible if it was chartered for charitable services, performs charitable services, and the property in question is used primarily for charitable, benevolent service and not primarily for profit. SECTION 2. Effective date of January 1, 1996, contingent upon voter approval of a constitutional amendment. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION On April 27, 1995, the committee met in a formal meeting and considered S.B. 1654. By a record vote of 7 ayes, 0 nays, 0 present not voting and 4 absent, the committee voted to report S.B. 1654 to the House without amendment with the recommendation that it do pass.