By Palmer H.B. No. 405
76R2313 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption from ad valorem taxation for certain
1-3 vacant land owned by a religious organization.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
1-6 adding Section 11.205 to read as follows:
1-7 Sec. 11.205. VACANT LAND OWNED BY RELIGIOUS ORGANIZATION.
1-8 (a) In this section, "religious organization" has the meaning
1-9 assigned by Section 11.20(c).
1-10 (b) A religious organization is entitled to an exemption
1-11 from taxation of one or more parcels, not to exceed in the
1-12 aggregate 40 acres, of vacant land that is owned by the
1-13 organization and does not produce revenue for the organization or
1-14 another person.
1-15 (c) For the purposes of Subsection (f), the chief appraiser
1-16 shall determine the market value of the land and shall record the
1-17 market value in the appraisal records.
1-18 (d) The religious organization shall notify the appraisal
1-19 office in writing before May 1 after the organization's entitlement
1-20 to the exemption ends. If the organization fails to notify the
1-21 appraisal office as required by this subsection, a penalty is
1-22 imposed on the land equal to 10 percent of the taxes that would
1-23 have been imposed on the land in each year it is erroneously
1-24 exempted under this section.
2-1 (e) The chief appraiser shall make an entry in the appraisal
2-2 records for the land on which the penalty is imposed indicating
2-3 liability for the penalty and shall deliver a written notice of
2-4 imposition of the penalty to the religious organization. The
2-5 notice shall include a brief explanation of the procedures for
2-6 protesting the imposition of the penalty. The assessor for each
2-7 taxing unit shall add the amount of the penalty to the unit's tax
2-8 bill for taxes on the land on which the penalty is imposed. The
2-9 penalty shall be collected at the same time and in the same manner
2-10 as the taxes on the land on which the penalty is imposed. The
2-11 amount of the penalty constitutes a lien on the land on which the
2-12 penalty is imposed and accrues penalty and interest in the same
2-13 manner as a delinquent tax.
2-14 (f) If the religious organization sells the land or uses the
2-15 land to produce revenue for the organization or another person, an
2-16 additional tax is imposed on the land for each of the preceding
2-17 five years for which the land received an exemption under this
2-18 section. The additional tax is an amount equal to the tax that
2-19 would have been imposed had the land been taxed on the basis of
2-20 market value in each of those years, plus interest at an annual
2-21 rate of seven percent calculated from the dates the taxes would
2-22 have become due.
2-23 (g) A tax lien attaches to the land on the date the
2-24 religious organization sells the land or first produces revenue for
2-25 the organization or another person from it to secure payment of the
2-26 additional tax and interest imposed by this section and any
2-27 penalties incurred. The lien exists in favor of all taxing units
3-1 for which the additional tax is imposed.
3-2 (h) The additional tax imposed by Subsection (f) does not
3-3 apply to a year for which the tax has already been imposed.
3-4 (i) If only part of a parcel that has received an exemption
3-5 under this section is sold by the religious organization or begins
3-6 to produce revenue, the additional tax applies only to that part of
3-7 the parcel and is an amount equal to the taxes that would have been
3-8 imposed on that part if that part had been taxed on the basis of
3-9 market value.
3-10 (j) A determination that land has been sold by the religious
3-11 organization or has begun to produce revenue for the organization
3-12 or another person is made by the chief appraiser. The chief
3-13 appraiser shall deliver a notice of the determination to the owner
3-14 of the land as soon as possible after making the determination and
3-15 shall include in the notice an explanation of the owner's right to
3-16 protest the determination. If the owner does not file a timely
3-17 protest or if the final determination of the protest is that the
3-18 additional taxes are due, the assessor for each taxing unit shall
3-19 prepare and deliver a bill for the additional taxes plus interest
3-20 as soon as practicable. The taxes and interest are due and become
3-21 delinquent and incur penalties and interest as provided by law for
3-22 ad valorem taxes imposed by the taxing unit if not paid before the
3-23 next February 1 that is at least 20 days after the date the bill is
3-24 delivered to the owner of the land.
3-25 (k) The sanctions provided by Subsection (f) do not apply if
3-26 the land is:
3-27 (1) sold for right-of-way;
4-1 (2) condemned; or
4-2 (3) transferred to this state or a political
4-3 subdivision of this state to be used for a public purpose.
4-4 SECTION 2. Section 11.43(c), Tax Code, is amended to read as
4-5 follows:
4-6 (c) An exemption provided by Section 11.13, 11.17, 11.18,
4-7 11.19, 11.20, 11.205, 11.21, 11.22, 11.23(j), 11.29, 11.30, or
4-8 11.31 of this code, once allowed, need not be claimed in subsequent
4-9 years, and except as otherwise provided by Subsection (e) of this
4-10 section, the exemption applies to the property until it changes
4-11 ownership or the person's qualification for the exemption changes.
4-12 However, the chief appraiser may require a person allowed one of
4-13 the exemptions in a prior year to file a new application to confirm
4-14 the person's current qualification for the exemption by delivering
4-15 a written notice that a new application is required, accompanied by
4-16 an appropriate application form, to the person previously allowed
4-17 the exemption.
4-18 SECTION 3. This Act takes effect January 1, 2000, but only
4-19 if the constitutional amendment to authorize the legislature to
4-20 exempt from ad valorem taxation vacant land owned by a church or
4-21 other religious organization if the land does not produce revenue
4-22 is approved by the voters. If that amendment is not approved by
4-23 the voters, this Act has no effect.
4-24 SECTION 4. The importance of this legislation and the
4-25 crowded condition of the calendars in both houses create an
4-26 emergency and an imperative public necessity that the
4-27 constitutional rule requiring bills to be read on three several
5-1 days in each house be suspended, and this rule is hereby suspended.