SRC-MAX S.B. 95 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 95
By: Patterson
Finance
2-6-97
As Filed


DIGEST 

Currently,  the Property Code allows churches and certain other authorized
entities a tax exemption when they purchase property and occupy that
property on the 1st day of  January of the following tax year.  S.B. 95
authorizes a church, among certain other entities, to purchase property
during the year and apply for a tax exemption the same year in which the
church purchases the property.  

PURPOSE

As proposed, S.B. 95 authorizes a church, among certain other entities, to
purchase property during the year and apply for a tax exemption the same
year in which the property is purchased.  

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 Section 11.42, Tax Code, by adding Subsection (c) to
authorize 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, to provide that to receive
an exemption, the eligibility for which is determined by the claimant's
qualifications on January 1 of the tax year, a person must file a
completed exemption application form, to receive eligibility
qualifications. Requires a person who after January 1 of a tax year
acquires property that qualifies for an exemption covered by Section
11.42(c) to apply for the exemption before the first anniversary of the
date the person acquires the property.   

SECTION 3.  Amends Chapter 26, Tax Code, by adding Section 26.112, as
follows: 

Sec.  26.112.  PRORATING TAXES--ACQUISITION BY NONPROFIT ORGANIZATION.
Provides a formula for tabulating the amount of tax due on acquired
property for a portion of the acquisition year for a person who qualifies
and is granted an exemption under Section 11.42(c). Provides a certain
formula for tabulating the amount of tax due on property if the exemption
terminates during the year of acquisition. 

SECTION 4.  Effective date:  January 1, 1998.

SECTION 5.  Emergency clause.