BILL ANALYSIS


                                                        S.B. 1654
                                                     By: Montford
                                                          Finance
                                                         04-21-95
                                     Committee Report (Unamended)
BACKGROUND

Since the Grand Lodge has been a long-standing organization, many
of the lodge halls are now historic landmarks.  The property value
of these halls has increased dramatically, and with this increase
in value a concomitant increase in property taxes has occurred.

There are currently 916 lodges in Texas.  The Masonic Fraternity
spends over $80 million per year on charity and operates community
projects, such as literacy programs, learning centers, and
hospitals.

PURPOSE

As proposed, S.B. 1654 exempts certain organizations chartered by
the Congress of the Republic of Texas from ad valorem of real
property.

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 11.23, Tax Code, by adding Subsection
(l), as follows:

     (l)  ORGANIZATION CHARTERED BY CONGRESS OF THE REPUBLIC OF
     TEXAS.  Provides that an organization chartered by the
     Congress of the Republic of Texas that has been in continuous
     existence since the date it was chartered is entitled to an
     exemption from taxation of the real property owned by the
     organization if:
     
     (1)  the organization is organized to perform and does
       perform charitable, benevolent, or public service
       activities; and 
       
       (2)  the property is used primarily for the charitable,
       benelovent, or public service activities of the organization
       and not for the primary purpose of producing a profit.
     SECTION 2.     Provides that this Act takes effect January 1, 1996,
only if the constitutional amendment proposed by the 74th
Legislature, Regular Session, 1995, relating to the exemption from
ad valorem taxation of certain property owned by certain
organizations chartered by the Congress of the Republic of Texas is
approved by the voters.  Provides that this Act has no effect if
that amendment is not approved by the voters.

SECTION 3. Emergency clause.