By Ellis, Zbranek, Hilderbran H.B. No. 824 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the exemption from ad valorem taxation of property 1-3 owned by certain nonprofit county fair associations. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 11.23, Tax Code, is amended by adding 1-6 Subsection (h) to read as follows: 1-7 (h) County Fair Associations. A county fair association 1-8 organized to hold agricultural fairs and encourage agricultural 1-9 pursuits is entitled to an exemption from taxation of the land and 1-10 buildings that it owns and uses to hold agricultural fairs. To 1-11 qualify for an exemption under this subsection, a county fair 1-12 association must: 1-13 (1) be a nonprofit corporation as defined by the Texas 1-14 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's 1-15 Texas Civil Statutes); 1-16 (2) be exempt from federal income taxes as an 1-17 organization described by Section 501(c)(3), (4), or (5), Internal 1-18 Revenue Code of 1986, as amended; 1-19 (3) qualify for an exemption from the franchise tax 1-20 under Section 171.060; and 1-21 (4) meet the requirements of a charitable organization 1-22 provided by Sections 11.18(e) and (f), for which purpose the 1-23 functions for which the association is organized are considered to 1-24 be charitable functions. 2-1 SECTION 2. This Act takes effect January 1, 2002, and 2-2 applies only to taxes imposed for a tax year that begins on or 2-3 after that date.