By Edwards                                      H.B. No. 2120

      75R2023 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 certain property acquired by a religious

 1-4     organization.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 11.42, Tax Code, is amended by adding

 1-7     Subsection (c) to read as follows:

 1-8           (c)  A person who acquires property after January 1 of a tax

 1-9     year may receive an exemption authorized by Section 11.20 for the

1-10     applicable portion of that tax year immediately on qualification

1-11     for the exemption.

1-12           SECTION 2.  Section 11.43(d), Tax Code, is amended to read as

1-13     follows:

1-14           (d)  To receive an exemption the eligibility for which is

1-15     determined by the claimant's qualifications on January 1 of the tax

1-16     year, a [A] person required to claim an exemption must file a

1-17     completed exemption application form before May 1 and must furnish

1-18     the information required by the form.  A person who after January 1

1-19     of a tax year acquires property that qualifies for an exemption

1-20     covered by Section 11.42(c) must apply for the exemption for the

1-21     applicable portion of that tax year before the first anniversary of

1-22     the date the person acquires the property.  For good cause shown

1-23     the chief appraiser may extend the deadline for filing an exemption

1-24     application by written order for a single period not to exceed 60

 2-1     days.

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

 2-3     Section 26.112 to read as follows:

 2-4           Sec. 26.112.  PRORATING TAXES--ACQUISITION BY RELIGIOUS

 2-5     ORGANIZATION.  (a)  If a person acquires taxable property that

 2-6     qualifies for and is granted an exemption covered by Section

 2-7     11.42(c) for a portion of the year in which the property was

 2-8     acquired, the amount of tax due on the property for that year is

 2-9     computed by multiplying the amount of taxes imposed on the property

2-10     for the entire year as provided by Section 26.09 by a fraction, the

2-11     denominator of which is 365 and the numerator of which is the

2-12     number of days in that year before the date the property qualified

2-13     for the exemption.

2-14           (b)  If the exemption terminates during the year of

2-15     acquisition, the tax due is computed by multiplying the taxes

2-16     imposed for the entire year as provided by Section 26.09 by a

2-17     fraction, the denominator of which is 365 and the numerator of

2-18     which is the number of days the property does not qualify for the

2-19     exemption.

2-20           SECTION 4.  This Act takes effect January 1, 1998.

2-21           SECTION 5.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended.