By Thompson                                           H.B. No. 1604
         76R3205 JD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain procedures involving the ad valorem taxation of
 1-3     property owned or acquired by a religious organization.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 33.011(a), Tax Code, is amended to read
 1-6     as follows:
 1-7           (a)  The governing body of a taxing unit:
 1-8                 (1)  shall waive penalties and may provide for the
 1-9     waiver of interest on a delinquent tax if an act or omission of an
1-10     officer, employee, or  agent of the taxing unit or the appraisal
1-11     district in which the taxing unit participates caused or resulted
1-12     in the taxpayer's failure to pay the tax before delinquency and if
1-13     the tax is paid within 21 days after the taxpayer knows or should
1-14     know of the delinquency; and
1-15                 (2)  may waive penalties and provide for the waiver of
1-16     interest on a delinquent tax if the property for which the tax is
1-17     owed is acquired by a religious organization that qualifies the
1-18     property for exemption under Section 11.20 before the first
1-19     anniversary of the date the religious organization acquires the
1-20     property.
1-21           SECTION 2.  Section 34.01(e), Tax Code, is amended to read as
1-22     follows:
1-23           (e)  Notwithstanding Subsection (c), if a sufficient bid is
1-24     not received, the officer making the sale may bid property seized
 2-1     under Subchapter E, Chapter 33, off to a person described by
 2-2     Section 11.181 or 11.20 for less than the tax warrant amount or the
 2-3     market value of the property.  Consent to the sale by the  taxing
 2-4     units entitled to receive proceeds of the sale is not required.
 2-5           SECTION 3.  Section 34.015, Tax Code, is amended to read as
 2-6     follows:
 2-7           Sec. 34.015.  ALTERNATE MANNER OF SALE.  (a)  Notwithstanding
 2-8     any other provision of this subchapter, the governing body of a
 2-9     municipality may provide for the manner in which land acquired by
2-10     the municipality following the foreclosure of a tax lien in favor
2-11     of the municipality or the seizure of the land under Subchapter E,
2-12     Chapter 33, may be sold if the land is sold to:
2-13                 (1)  a nonprofit organization that develops housing for
2-14     low income individuals and families as a primary activity to
2-15     promote community-based revitalization of the municipality; [or]
2-16                 (2)  a nonprofit corporation described by 26 U.S.C.
2-17     Section 501(c)(3) that:
2-18                       (A)  has been incorporated in this state for at
2-19     least one year;
2-20                       (B)  has a corporate purpose to develop
2-21     affordable housing that is stated in its articles of incorporation,
2-22     bylaws, or charter;
2-23                       (C)  has at least one-fourth of its board of
2-24     directors residing in the municipality;  and
2-25                       (D)  engages primarily in the building, repair,
2-26     rental, or sale of housing for low income individuals and families;
2-27     or
 3-1                 (3)  a religious organization that:
 3-2                       (A)  owns other property located in the
 3-3     municipality that is exempt from taxation under Section 11.20; and
 3-4                       (B)  has entered into a written agreement with
 3-5     the municipality regarding the revitalization of the land.
 3-6           (b)  A municipality operating under this section may by
 3-7     ordinance determine the individuals and families who qualify as low
 3-8     income individuals and families under Subsection (a)(1) or (2).  In
 3-9     adopting an ordinance under this subsection [section], the
3-10     municipality shall consider median income of individuals and median
3-11     family income in the area.
3-12           SECTION 4.  Section 11.433(e), Tax Code, is repealed.
3-13           SECTION 5.  This Act takes effect September 1, 1999.
3-14           SECTION 6.  The importance of this legislation and the
3-15     crowded condition of the calendars in both houses create an
3-16     emergency and an imperative public necessity that the
3-17     constitutional rule requiring bills to be read on three several
3-18     days in each house be suspended, and this rule is hereby suspended.