77R12495 JD-D                           
         By Ellis, Zbranek, Hilderbran                          H.B. No. 824
         Substitute the following for H.B. No. 824:
         By Ramsay                                          C.S.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.  An
1-11     association that holds a license under the Texas Racing Act
1-12     (Article 179e, Vernon's Texas Civil Statutes) to conduct a horse
1-13     race meeting or a greyhound race meeting with pari-mutuel wagering
1-14     is not entitled to an exemption under this subsection.  Land or a
1-15     building used to conduct a horse race meeting or a greyhound race
1-16     meeting with pari-mutuel wagering under that Act may not be
1-17     exempted under this subsection.  To qualify for an exemption under
1-18     this subsection, a county fair association must:
1-19                 (1)  be a nonprofit corporation as defined by the Texas
1-20     Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
1-21     Texas Civil Statutes);
1-22                 (2)  be exempt from federal income taxes as an
1-23     organization described by Section 501(c)(3), (4), or (5), Internal
1-24     Revenue Code of 1986, as amended;
 2-1                 (3)  qualify for an exemption from the franchise tax
 2-2     under Section 171.060; and
 2-3                 (4)  meet the requirements of a charitable organization
 2-4     provided by Sections 11.18(e) and (f), for which purpose the
 2-5     functions for which the association is organized are considered to
 2-6     be charitable functions.
 2-7           SECTION 2.  This Act takes effect January 1, 2002, and
 2-8     applies only to taxes imposed for a tax year that begins on or
 2-9     after that date.