By Shields                                       H.B. No. 526

      75R57 JD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the immediate qualification for an ad valorem tax

 1-3     exemption for a church or other nonprofit organization.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 11.42, Tax Code, is amended by adding

 1-6     Subsection (c) to read as follows:

 1-7           (c)  A person who acquires property after January 1 of a tax

 1-8     year may receive an exemption authorized by Section 11.17, 11.18,

 1-9     11.19, 11.20, 11.21, 11.23, or 11.30 for the applicable portion of

1-10     that tax year immediately on qualification for the exemption.

1-11           SECTION 2.  Section 11.43(d), Tax Code, is amended to read as

1-12     follows:

1-13           (d)  To receive an exemption the eligibility for which is

1-14     determined by the claimant's qualifications on January 1 of the tax

1-15     year, a [A] person required to claim an exemption must file a

1-16     completed exemption application form before May 1 and must furnish

1-17     the information required by the form.  A person who after January 1

1-18     of a tax year acquires property that qualifies for an exemption

1-19     covered by Section 11.42(c) must apply for the exemption for the

1-20     applicable portion of that tax year before the first anniversary of

1-21     the date the person acquires the property.  For good cause shown

1-22     the chief appraiser may extend the deadline for filing an exemption

1-23     application by written order for a single period not to exceed 60

1-24     days.

 2-1           SECTION 3.  Chapter 26, Tax Code, is amended by adding

 2-2     Section 26.112 to read as follows:

 2-3           Sec. 26.112.  PRORATING TAXES--ACQUISITION BY NONPROFIT

 2-4     ORGANIZATION.  (a)  If a person acquires taxable property that

 2-5     qualifies for and is granted an exemption covered by Section

 2-6     11.42(c) for a portion of the year in which the property was

 2-7     acquired, the amount of tax due on the property for that year is

 2-8     computed by multiplying the amount of taxes imposed on the property

 2-9     for the entire year as provided by Section 26.09 by a fraction, the

2-10     denominator of which is 365 and the numerator of which is the

2-11     number of days in that year before the date the property qualified

2-12     for the exemption.

2-13           (b)  If the exemption terminates during the year of

2-14     acquisition, the tax due is computed by multiplying the taxes

2-15     imposed for the entire year as provided by Section 26.09 by a

2-16     fraction, the denominator of which is 365 and the numerator of

2-17     which is the number of days the property does not qualify for the

2-18     exemption.

2-19           SECTION 4.  This Act takes effect January 1, 1998.

2-20           SECTION 5.  The importance of this legislation and the

2-21     crowded condition of the calendars in both houses create an

2-22     emergency and an imperative public necessity that the

2-23     constitutional rule requiring bills to be read on three several

2-24     days in each house be suspended, and this rule is hereby suspended.