1-1           By:  Patterson                                    S.B. No. 95

 1-2           (In the Senate - Filed November 13, 1996; January 14, 1997,

 1-3     read first time and referred to Committee on Finance;

 1-4     February 20, 1997, reported favorably by the following vote:  Yeas

 1-5     11, Nays 0; February 20, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the immediate qualification for an ad valorem tax

 1-9     exemption for a church or other nonprofit organization.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 11.42, Tax Code, is amended by adding

1-12     Subsection (c) to read as follows:

1-13           (c)  A person who acquires property after January 1 of a tax

1-14     year may receive an exemption authorized by Section 11.17, 11.18,

1-15     11.19, 11.20, 11.21, 11.23, or 11.30 for the applicable portion of

1-16     that tax year immediately on qualification for the exemption.

1-17           SECTION 2.  Subsection (d), Section 11.43, Tax Code, is

1-18     amended to read as follows:

1-19           (d)  To receive an exemption the eligibility for which is

1-20     determined by the claimant's qualifications on January 1 of the tax

1-21     year, a [A] person required to claim an exemption must file a

1-22     completed exemption application form before May 1 and must furnish

1-23     the information required by the form.  A person who after January 1

1-24     of a tax year acquires property that qualifies for an exemption

1-25     covered by Section 11.42(c) must apply for the exemption for the

1-26     applicable portion of that tax year before the first anniversary of

1-27     the date the person acquires the property.  For good cause shown

1-28     the chief appraiser may extend the deadline for filing an exemption

1-29     application by written order for a single period not to exceed 60

1-30     days.

1-31           SECTION 3.  Chapter 26, Tax Code, is amended by adding

1-32     Section 26.112 to read as follows:

1-33           Sec. 26.112.  PRORATING TAXES--ACQUISITION BY NONPROFIT

1-34     ORGANIZATION.  (a)  If a person acquires taxable property that

1-35     qualifies for and is granted an exemption covered by Section

1-36     11.42(c) for a portion of the year in which the property was

1-37     acquired, the amount of tax due on the property for that year is

1-38     computed by multiplying the amount of taxes imposed on the property

1-39     for the entire year as provided by Section 26.09 by a fraction, the

1-40     denominator of which is 365 and the numerator of which is the

1-41     number of days in that year before the date the property qualified

1-42     for the exemption.

1-43           (b)  If the exemption terminates during the year of

1-44     acquisition, the tax due is computed by multiplying the taxes

1-45     imposed for the entire year as provided by Section 26.09 by a

1-46     fraction, the denominator of which is 365 and the numerator of

1-47     which is the number of days the property does not qualify for the

1-48     exemption.

1-49           SECTION 4.  This Act takes effect January 1, 1998.

1-50           SECTION 5.  The importance of this legislation and the

1-51     crowded condition of the calendars in both houses create an

1-52     emergency and an imperative public necessity that the

1-53     constitutional rule requiring bills to be read on three several

1-54     days in each house be suspended, and this rule is hereby suspended.

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