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. An 1-11 association that holds a license issued after January 1, 2001, 1-12 under the Texas Racing Act (Article 179e, Vernon's Texas Civil 1-13 Statutes) to conduct a horse race meeting or a greyhound race 1-14 meeting with pari-mutuel wagering is not entitled to an exemption 1-15 under this subsection. Land or a building used to conduct a horse 1-16 race meeting or a greyhound race meeting with pari-mutuel wagering 1-17 under a license issued after January 1, 2001, under that Act may 1-18 not be exempted under this subsection. To qualify for an exemption 1-19 under this subsection, a county fair association must: 1-20 (1) be a nonprofit corporation as defined by the Texas 1-21 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's 1-22 Texas Civil Statutes); 1-23 (2) be exempt from federal income taxes as an 1-24 organization described by Section 501(c)(3), (4), or (5), Internal 2-1 Revenue Code of 1986, as amended; 2-2 (3) qualify for an exemption from the franchise tax 2-3 under Section 171.060; and 2-4 (4) meet the requirements of a charitable organization 2-5 provided by Sections 11.18(e) and (f), for which purpose the 2-6 functions for which the association is organized are considered to 2-7 be charitable functions. 2-8 SECTION 2. This Act takes effect January 1, 2002, and 2-9 applies only to taxes imposed for a tax year that begins on or 2-10 after that date. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 824 was passed by the House on May 11, 2001, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 824 on May 24, 2001, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 824 was passed by the Senate, with amendments, on May 21, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor