SRC-DPW H.B. 1978 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1978
76R1285 JD-DBy: Kuempel (Wentworth)
Finance
5/3/1999
Engrossed


DIGEST 

Currently, Texas law provides an exemption from ad valorem taxation for
charitable organizations. However, the description of a charitable
organization designed to support elderly persons is sufficiently narrow
that some counties have interpreted it to mean that the charitable
organization must be designed exclusively to provide support to qualify for
an exemption.  This bill would include senior citizen centers that provide
many kinds of services to the elderly in the description of a charitable
organization that qualifies for an exemption from ad valorem taxation. 

PURPOSE

As proposed, H.B. 1978 exempts property owned by organizations that provide
support to elderly persons from ad valorem taxation. 

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 11.18, Tax Code, by amending Subsection (d) and
adding Subsection (l), to require a charitable organization to be organized
to exclusively perform religious, charitable, scientific, literary, or
educational purposes and, except as permitted by Subsections (h) and (l),
engage in the provision of recreational or social activities and facilities
designed to address the special needs of elderly persons or to the
handicapped.  Requires a charitable organization described by Subsection
(d)(3) that provides support to elderly persons to engage primarily in
performing charitable functions, but is authorized to engage in other
activities that support or are related to its charitable functions. 

SECTION 2.(a) Provides that this Act takes effect only if the
constitutional amendment proposed by the 76th Legislature, Regular Session,
1999, to authorize the exemption of property of institutions of public
charity from ad valorem taxation, is approved by the voters.  Provides that
if the amendment is not approved, this Act has no effect. 

(b) Effective date: January 1, 2000, and applies only to ad valorem taxes
imposed in a tax year that begins on or after that date. 

SECTION 3. Emergency clause.