By McCall H.B. No. 2821
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to property tax exemptions for charitable organizations.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 11.18(h), Tax Code, is amended to read as
1-5 follows:
1-6 (h) Performance of noncharitable functions by a charitable
1-7 organization that owns or uses exempt property does not result in
1-8 loss of an exemption authorized by this section if those other
1-9 functions are incidental to the organization's charitable
1-10 functions. The division of responsibilities between an
1-11 organization that qualifies as a charitable organization under
1-12 Subsection (c) and another organization will not disqualify the
1-13 organizations or any property owned or used by either organization
1-14 from receiving an exemption under this section if the collaboration
1-15 furthers the provision of one or more of the charitable functions
1-16 described in Subsection (d) and if the other organization:
1-17 (1) is exempt from federal income taxation under
1-18 Section 501(a), Internal Revenue Code of 1986, as an organization
1-19 described by Section 501(c)(3) of that code;
1-20 (2) meets the criteria for a charitable organization
1-21 under Subsections (e) and (f); and
1-22 (3) is under common control with the charitable
1-23 organization described in this subsection.
1-24 SECTION 2. This Act takes effect September 1, 1999.
2-1 SECTION 3. The importance of this legislation and the
2-2 crowded condition of the calendars in both houses create an
2-3 emergency and an imperative public necessity that the
2-4 constitutional rule requiring bills to be read on three several
2-5 days in each house be suspended, and this rule is hereby suspended.