By Bailey H.B. No. 1632
76R3806 GJH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption from ad valorem taxation of the property
1-3 of a neighborhood association.
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 11.33 to read as follows:
1-7 Sec. 11.33. NEIGHBORHOOD ASSOCIATIONS. (a) In this
1-8 section, "neighborhood association" means a nonprofit corporation,
1-9 organization, partnership, association, or other legal entity that:
1-10 (1) is organized to preserve, protect, improve, and
1-11 monitor matters affecting a defined residential area;
1-12 (2) has a membership of at least:
1-13 (A) 50 households in the defined residential
1-14 area; or
1-15 (B) 10 percent of the households in the defined
1-16 residential area;
1-17 (3) if located in a municipality that recognizes a
1-18 neighborhood association as a representative of the households in
1-19 the defined residential area of the association, is recognized by
1-20 the municipality for that purpose;
1-21 (4) has elected officers or directors;
1-22 (5) is exempt from taxation under Section 501(a),
1-23 Internal Revenue Code of 1986, as an organization described in
1-24 Section 501(c)(3) or (4) of that code; and
2-1 (6) meets the requirements of a charitable
2-2 organization provided by Sections 11.18(e) and (f).
2-3 (b) A neighborhood association is entitled to an exemption
2-4 from taxation of the property the association owns and uses
2-5 exclusively for the purposes for which the association is
2-6 organized.
2-7 SECTION 2. Section 11.43(c), Tax Code, is amended to read as
2-8 follows:
2-9 (c) An exemption provided by Section 11.13, 11.17, 11.18,
2-10 11.19, 11.20, 11.21, 11.22, 11.23(j), 11.29, 11.30, [or] 11.31, or
2-11 11.33 [of this code], once allowed, need not be claimed in
2-12 subsequent years, and except as otherwise provided by Subsection
2-13 (e) [of this section], the exemption applies to the property until
2-14 it changes ownership or the person's qualification for the
2-15 exemption changes. However, the chief appraiser may require a
2-16 person allowed one of the exemptions in a prior year to file a new
2-17 application to confirm the person's current qualification for the
2-18 exemption by delivering a written notice that a new application is
2-19 required, accompanied by an appropriate application form, to the
2-20 person previously allowed the exemption.
2-21 SECTION 3. The heading to Section 11.436, Tax Code, is
2-22 amended to read as follows:
2-23 Sec. 11.436. APPLICATION FOR EXEMPTION OF CERTAIN PROPERTY
2-24 USED FOR LOW-INCOME HOUSING OR NEIGHBORHOOD ASSOCIATION
2-25 SECTION 4. Section 11.436(a), Tax Code, is amended to read
2-26 as follows:
2-27 (a) An organization that acquires property that qualifies
3-1 for an exemption under Section 11.181(a), [or] 11.182(a), or 11.33
3-2 may apply for the exemption for the year of acquisition not later
3-3 than the 30th day after the date the organization acquires the
3-4 property, and the deadline provided by Section 11.43(d) does not
3-5 apply to the application for that year.
3-6 SECTION 5. Section 26.111(a), Tax Code, is amended to read
3-7 as follows:
3-8 (a) If an organization acquires taxable property that
3-9 qualifies for and is granted an exemption under Section 11.181(a),
3-10 [or] 11.182(a), or 11.33 for the year in which the property was
3-11 acquired, the amount of tax due on the property for that year is
3-12 calculated by multiplying the amount of taxes imposed on the
3-13 property for the entire year as provided by Section 26.09 by a
3-14 fraction, the denominator of which is 365 and the numerator of
3-15 which is the number of days in that year before the date the
3-16 [charitable] organization acquired the property.
3-17 SECTION 6. This Act takes effect January 1, 2000, but only
3-18 if the constitutional amendment proposed by the 76th Legislature,
3-19 Regular Session, 1999, to authorize the legislature to exempt from
3-20 ad valorem taxation the property of a neighborhood association is
3-21 approved by the voters. If that amendment is not approved by the
3-22 voters, this Act has no effect.
3-23 SECTION 7. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative public necessity that the
3-26 constitutional rule requiring bills to be read on three several
3-27 days in each house be suspended, and this rule is hereby suspended.