SWB S.B. 95 75(R)BILL ANALYSIS


WAYS & MEANS
S.B. 95
By: Patterson, Jerry (Shields)
4-11-97
Committee Report (Unamended)



BACKGROUND 

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

PURPOSE

This bill authorizes a church, among certain other entities, to apply for
and receive an ad valorem tax exemption in the same year in which a
property is purchased. 

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 (Exemption Qualification Date),
by adding Subsection (c) authorizing a person, who acquires property after
January 1 of a tax year, to receive, upon qualification, an exemption
authorized by Section 11.17, 11.18, 11.19, 11.20, 11.21, 11.23, or 11.30
for the applicable portion of the tax year. 

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

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

(a) Provides a formula for tabulating the prorated tax due for a person
who is granted an exemption under Section 11.42(c).  

(b) Provides a formula for tabulating the tax due on property if the
exemption terminates during the year of acquisition. 

SECTION 4. Effective date: January 1, 1998.

SECTION 5. Emergency clause.