SRC-CDH H.B. 1518 75(R)
Page 1 of 1     BILL ANALYSIS 


Senate Research CenterH.B. 1518
By: Farrar (Gallegos)
Finance
5-13-97
Engrossed


DIGEST 

Currently, Chapter 11 of the Tax Code, regarding exemptions, provides for
ad valorem tax exemptions for certain organizations that provide certain
public policy goals; and Section 23.18, Tax Code, provides a nominal
exemption for the property owned by a nonprofit homeowners' organization.
Presently, neighborhood associations that preserve, protect, improve, and
monitor matters affecting a defined residential area have no special tax
treatment.  H.B. 1518 provides that a neighborhood association is entitled
to an exemption from taxation of the property the association owns and
uses exclusively for the purposes for which the association is organized.

PURPOSE

As proposed, H.B. 1518 provides for an exemption from ad valorem taxation
of the property of a neighborhood association. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 11B, Tax Code, by adding Section 11.32, as
follows: 

Sec. 11.32. NEIGHBORHOOD ASSOCIATIONS.  Provides that a neighborhood
association is entitled to an exemption from taxation of the property the
association owns and uses exclusively for the purposes for which the
association is organized.  Defines "neighborhood association" to mean a
nonprofit corporation, organization, partnership, association, or other
legal entity that is organized to preserve, protect, improve, and monitor
matters affecting a defined residential area; and meets certain other
qualifications.   

SECTION 2. Amends Section 11.43(c), Tax Code, to make a conforming change.

SECTION 3. Amends Section 11.436(a), Tax Code, to make a conforming change.

SECTION 4. Amends Section 26.111(a), Tax Code, to make a conforming change.

SECTION 5. Effective date: January 1, 1998, but only if the constitutional
amendment proposed by the 75th Legislature, Regular Session, 1997, to
authorize the legislature to exempt from ad valorem taxation the property
of a neighborhood association is approved by the voters.  Provides that if
that amendment is not approved, then this Act has no effect. 

SECTION 6. Emergency clause.