A JOINT RESOLUTION
1-1 proposing a constitutional amendment to authorize the exemption of
1-2 property owned by institutions engaged primarily in public
1-3 charitable functions from ad valorem taxation.
1-4 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2(a), Article VIII, Texas Constitution,
1-6 is amended to read as follows:
1-7 (a) All occupation taxes shall be equal and uniform upon the
1-8 same class of subjects within the limits of the authority levying
1-9 the tax; but the legislature may, by general laws, exempt from
1-10 taxation public property used for public purposes; actual places
1-11 of religious worship, also any property owned by a church or by a
1-12 strictly religious society for the exclusive use as a dwelling
1-13 place for the ministry of such church or religious society, and
1-14 which yields no revenue whatever to such church or religious
1-15 society; provided that such exemption shall not extend to more
1-16 property than is reasonably necessary for a dwelling place and in
1-17 no event more than one acre of land; places of burial not held for
1-18 private or corporate profit; solar or wind-powered energy devices;
1-19 all buildings used exclusively and owned by persons or associations
1-20 of persons for school purposes and the necessary furniture of all
1-21 schools and property used exclusively and reasonably necessary in
1-22 conducting any association engaged in promoting the religious,
1-23 educational and physical development of boys, girls, young men or
1-24 young women operating under a State or National organization of
2-1 like character; also the endowment funds of such institutions of
2-2 learning and religion not used with a view to profit; and when the
2-3 same are invested in bonds or mortgages, or in land or other
2-4 property which has been and shall hereafter be bought in by such
2-5 institutions under foreclosure sales made to satisfy or protect
2-6 such bonds or mortgages, that such exemption of such land and
2-7 property shall continue only for two years after the purchase of
2-8 the same at such sale by such institutions and no longer, and
2-9 institutions engaged primarily in public charitable functions,
2-10 which may conduct auxiliary activities to support those charitable
2-11 functions [of purely public charity]; and all laws exempting
2-12 property from taxation other than the property mentioned in this
2-13 Section shall be null and void.
2-14 SECTION 2. Section 71(b), Article XVI, Texas Constitution,
2-15 is amended to read as follows:
2-16 (b) The legislature by law may establish a Texas small
2-17 business incubator fund to be used without further appropriation
2-18 solely in furtherance of a program established by the legislature
2-19 to foster and stimulate the development of small businesses in the
2-20 state. The fund shall contain a project account, an interest and
2-21 sinking account, and other accounts authorized by the legislature.
2-22 A small business incubator operating under the program is exempt
2-23 from ad valorem taxation in the same manner as an institution of
2-24 [purely] public charity under Article VIII, Section 2, of this
2-25 constitution. To carry out the program authorized by this
2-26 subsection, the legislature may authorize loans and grants of money
2-27 in the Texas small business incubator fund and the issuance of up
3-1 to $20 million of general obligation bonds to provide initial
3-2 funding of the Texas small business incubator fund. The Texas
3-3 small business incubator fund is composed of the proceeds of the
3-4 bonds authorized by this subsection, loan repayments, and other
3-5 amounts received by the state for loans or grants made under this
3-6 subsection and any other amounts required to be deposited in the
3-7 Texas small business incubator fund by the legislature.
3-8 SECTION 3. Article VIII, Texas Constitution, is amended by
3-9 adding the following temporary provision:
3-10 TEMPORARY PROVISION. The constitutional amendment proposed
3-11 by the 76th Legislature, Regular Session, 1999, to authorize the
3-12 exemption of property of institutions engaged primarily in public
3-13 charitable functions from ad valorem taxation takes effect January
3-14 1, 2000, and applies only to taxes imposed on or after that date.
3-15 This temporary provision expires January 1, 2002.
3-16 SECTION 4. This proposed constitutional amendment shall be
3-17 submitted to the voters at an election to be held November 2, 1999.
3-18 The ballot shall be printed to permit voting for or against the
3-19 proposition: "The constitutional amendment to authorize the
3-20 legislature to exempt property owned by institutions engaged
3-21 primarily in public charitable functions from ad valorem taxation."
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.J.R. No. 4 was passed by the House on May
11, 1999, by the following vote: Yeas 144, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to
H.J.R. No. 4 on May 27, 1999, by the following vote: Yeas 141,
Nays 0, 3 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.J.R. No. 4 was passed by the Senate, with
amendments, on May 25, 1999, by the following vote: Yeas 30, Nays
0.
_______________________________
Secretary of the Senate
RECEIVED: _____________________
Date
_____________________
Secretary of State