HBA-SEB C.S.H.B. 3368 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3368 By: Talton Ways & Means 5/3/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, a religious organization seeking to qualify for a tax exemption must file an application and meet specific criteria in order to qualify. C.S.H.B. 3368 provides that a religious organization is not required to apply for a tax exemption. This bill applies to a religious organization that has conscientious objections to filing an application for exemption and that has been declared exempt from taxation. Instead of applying for the exemption, this bill authorizes the religious organization to identify the property owned by the organization, state its objections to filing for the exemption, and submit evidence showing that it is exempt from taxation. Upon receipt of the information, the chief appraiser is required to grant the exemption unless the chief appraiser determines that the religious organization is not entitled to the exemption. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.43, Tax Code, by adding Subsection (l), to provide that this subsection applies only to a religious organization that has conscientious objections to filing an application for exemption. Authorizes the religious organization, in lieu of applying for the exemption, to identify the property owned by the organization, state its objections to filing for the exemption, and submit evidence showing that it is exempt from taxation on its own initiative or on written or oral inquiry by the appraisal office. Requires the chief appraiser to investigate whether the organization qualifies for exemption on receipt of that information. Requires the chief appraiser to grant the exemption unless the chief appraiser determines that the religious organization is not entitled to the exemption SECTION 2.Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in SECTION 1 by removing language relating to the Internal Revenue Code of 1986. More specifically, the substitute removes the provision stating that new Subsection (l) applies only to a religious organization that has been declared exempt from taxation under the code. Also, the substitute authorizes, rather than requires, a religious organization to take certain actions in lieu of filing an application for an exemption. The substitute removes text from the original providing that a religious organization is not required to apply for the exemption set out in Section 11.20, Tax Code.