SRC-JXG H.J.R. 4 76(R)   BILL ANALYSIS


Senate Research Center   H.J.R. 4
76R1702 JD-DBy: Kuempel (Wentworth)
Finance
5/13/1999
Engrossed


DIGEST 

Currently, Section 2(a), Article VIII, Texas Constitution, provides an
exemption from ad valorem taxation for property of institutions of purely
public charity. The constitution provides that an organization designed to
support the elderly is a charitable organization. Many senior citizen
centers provide a variety of services to senior citizens. Some counties
have interpreted the constitution to mean that the charitable organization
must be designed exclusively to provide support to the elderly to qualify
for an exemption. Defining a charitable organization in the general law
instead of the constitution would ensure uniform taxation of such entities
throughout the state.  H.J.R. 4 would include senior citizens centers that
provide many kinds of services to the elderly in the definition of a
charitable organization.  

PURPOSE

As proposed,  H.J.R. 4 requires the submission to the voters of a
constitutional amendment exempting the property of institutions of public
charity as defined by general law 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 2(a), Article VIII, Texas Constitution, to exempt
the property of institutions of public charity as defined by general law,
rather than institutions of purely public charity, from ad valorem
taxation.   

SECTION 2. Amends Section 71(b), Article XVI, Texas Constitution, to make a
conforming change.  

SECTION 3. Amends Article VIII, Texas Constitution, to add a temporary
provision, to provide that the constitutional amendment proposed takes
effect January 1, 2000, and is applicable only to taxes imposed on or after
that date.  Provides that this temporary provision expires January 1, 2002. 

SECTION 4. Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999. Sets forth the
required language for the ballot.