1-1 By: Thompson (Senate Sponsor - Ellis) H.B. No. 1604
1-2 (In the Senate - Received from the House April 21, 1999;
1-3 April 22, 1999, read first time and referred to Committee on
1-4 Finance; May 13, 1999, reported favorably by the following vote:
1-5 Yeas 10, Nays 0; May 13, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain procedures involving the ad valorem taxation of
1-9 property owned or acquired by a religious organization.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 33.011(a), Tax Code, is amended to read
1-12 as follows:
1-13 (a) The governing body of a taxing unit:
1-14 (1) shall waive penalties and may provide for the
1-15 waiver of interest on a delinquent tax if an act or omission of an
1-16 officer, employee, or agent of the taxing unit or the appraisal
1-17 district in which the taxing unit participates caused or resulted
1-18 in the taxpayer's failure to pay the tax before delinquency and if
1-19 the tax is paid within 21 days after the taxpayer knows or should
1-20 know of the delinquency; and
1-21 (2) may waive penalties and provide for the waiver of
1-22 interest on a delinquent tax if the property for which the tax is
1-23 owed is acquired by a religious organization that qualifies the
1-24 property for exemption under Section 11.20 before the first
1-25 anniversary of the date the religious organization acquires the
1-26 property.
1-27 SECTION 2. Section 34.01(e), Tax Code, is amended to read as
1-28 follows:
1-29 (e) Notwithstanding Subsection (c), if a sufficient bid is
1-30 not received, the officer making the sale may bid property seized
1-31 under Subchapter E, Chapter 33, off to a person described by
1-32 Section 11.181 or 11.20 for less than the tax warrant amount or the
1-33 market value of the property. Consent to the sale by the taxing
1-34 units entitled to receive proceeds of the sale is not required.
1-35 SECTION 3. Section 34.015, Tax Code, is amended to read as
1-36 follows:
1-37 Sec. 34.015. ALTERNATE MANNER OF SALE. (a) Notwithstanding
1-38 any other provision of this subchapter, the governing body of a
1-39 municipality may provide for the manner in which land acquired by
1-40 the municipality following the foreclosure of a tax lien in favor
1-41 of the municipality or the seizure of the land under Subchapter E,
1-42 Chapter 33, may be sold if the land is sold to:
1-43 (1) a nonprofit organization that develops housing for
1-44 low income individuals and families as a primary activity to
1-45 promote community-based revitalization of the municipality; [or]
1-46 (2) a nonprofit corporation described by 26 U.S.C.
1-47 Section 501(c)(3) that:
1-48 (A) has been incorporated in this state for at
1-49 least one year;
1-50 (B) has a corporate purpose to develop
1-51 affordable housing that is stated in its articles of incorporation,
1-52 bylaws, or charter;
1-53 (C) has at least one-fourth of its board of
1-54 directors residing in the municipality; and
1-55 (D) engages primarily in the building, repair,
1-56 rental, or sale of housing for low income individuals and families;
1-57 or
1-58 (3) a religious organization that:
1-59 (A) owns other property located in the
1-60 municipality that is exempt from taxation under Section 11.20; and
1-61 (B) has entered into a written agreement with
1-62 the municipality regarding the revitalization of the land.
1-63 (b) A municipality operating under this section may by
1-64 ordinance determine the individuals and families who qualify as low
2-1 income individuals and families under Subsection (a)(1) or (2). In
2-2 adopting an ordinance under this subsection [section], the
2-3 municipality shall consider median income of individuals and median
2-4 family income in the area.
2-5 SECTION 4. Section 11.433(e), Tax Code, is repealed.
2-6 SECTION 5. This Act takes effect September 1, 1999.
2-7 SECTION 6. The importance of this legislation and the
2-8 crowded condition of the calendars in both houses create an
2-9 emergency and an imperative public necessity that the
2-10 constitutional rule requiring bills to be read on three several
2-11 days in each house be suspended, and this rule is hereby suspended.
2-12 * * * * *