SWB S.B. 344 75(R)BILL ANALYSIS


WAYS & MEANS
S.B. 344
By: Harris (Brimer)
5-23-97
Committee Report (Unamended)



BACKGROUND 

Current law provides that a person is entitled to an exemption from taxes
of the buildings and tangible personal property if the property is used
only for educational purposes, if the person operates the school, and if
the buildings and property are reasonably necessary for the operation of
the school.  Current law also provides that use of the property for
non-educational purposes does not result in the loss of an exemption, if
those other purposes are incidental to use of the property for educational
functions and benefit the students or faculty of the school. 

PURPOSE

S.B. 344 adds a provision to current law to provide that the buyer of the
tax exempt property is entitled to exemption on the property if the seller
is authorized to continue to use the property pending the  use of the
property for a school and the seller would be entitled to an exemption if
that person continued to own the property. 

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 11.21, Tax Code (Schools), by adding Section (f)
to provide that, notwithstanding Subsection (a), a person is entitled to
an exemption from taxation of the buildings and tangible personal property
the person acquires for use for a school that meets each requirement of
Subsection (d) if: 1) the person authorizes the former owner to continue
the use of the property pending the use of the property for a school; and
2) the former owner would be entitled to an exemption if the former owner
continued to own the property. 

SECTION 2.Requires the chief appraiser of an appraisal district to accept
and approve or deny an application for an exemption from ad valorem
taxation under Section 11.21(f), Tax Code (Schools), as added by this Act,
for the ad valorem tax year that began January 1, 1997, if the application
is filed as provided by Section 11.434, Tax Code. 

SECTION 3.Effective date: September 1, 1997.

SECTION 4.Emergency clause.