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.