CS H.B. 526 75(R)BILL ANALYSIS


WAYS & MEANS
H.B. 526
By: Shields
3-6-97
Committee Report (Unamended)



BACKGROUND 

Section 11.42, Tax Code, specifies the qualification date for ad valorem
tax exemptions to be January 1.  Currently, an otherwise eligible person
or organization that purchases a property after January 1, is not entitled
to receive the exemption for that tax year. 

PURPOSE

The bill would allow certain organizations to apply for and receive an
exemption from ad valorem taxes for real property that is acquired after
the qualification date. 

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 11.42, Tax Code, by adding Subsection (c) as
follows: 

(c)  Allows any person that acquires property after January 1, of a tax
year to receive an exemption authorized by Sections 11.17, 11.18, 11.19,
11.20, 11.21, 11.23, or 11.30, Tax Code, immediately upon qualification
for the exemption. 

SECTION 2.Amends Section 11.43(d), Tax Code, to require anyone applying
for such an exemption to apply for the exemption within one year of
acquiring the property. 

SECTION 3.Amends Chapter 26, Tax Code, by adding Section 26.112. PRORATING
TAXES--ACQUISITION BY NONPROFIT ORGANIZATION. 

(a)  Provides the method for calculating the tax due based upon the
fractional portion of 365 days of eligibility. 

(b) Provides the method for calculating the tax due in the event that the
exemption terminates during the year of acquisition. 

SECTION 4. Effective date: January 1, 1998.

SECTION 5. Emergency clause.