SRC-AXB S.J.R. 40 76(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 40
By: Ogden
Finance
4/9/1999
As Filed


DIGEST 

Currently, in many rural communities, the only social hub and facility big
enough to hold events is the meeting hall belonging to charitable fraternal
organizations.  However, because of property tax increases, it becomes
difficult to keep the halls open and the memberships must spend an
inordinate amount of time raising money, rather than performing charitable
services.  S.J.R. 40 proposes an amendment which would authorize the
legislature to exempt all charitable fraternal organizations, rather than
just the Masonic Lodge, from ad valorem property taxes. 

PURPOSE

As proposed, S.J.R. 40 requires the submission to the voters of a
constitutional amendment to authorize the legislature to exempt from ad
valorem taxation property of fraternal organizations which is used
primarily for charitable, benevolent, fraternal, or public service
activities. 

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 Article VIII, Section 2, Texas Constitution, by adding
Subsections (e) and (f), to authorize the legislature to exempt the
property of fraternal organizations which were chartered by the Congress of
the Republic of Texas or are organized as a corporation, society, order or
voluntary association, from ad valorem taxation, if the property is used
for charitable, benevolent, fraternal, or public service activities.
Authorizes the legislature to provide qualifications and limitations for
the exemption. 

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