By Ellis                                               H.B. No. 824
         77R4611 JD-D                           
                                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;
1-15                 (2)  be exempt from federal income taxes as an
1-16     organization described by Section 501(c)(3), Internal Revenue Code
1-17     of 1986, as amended;
1-18                 (3)  qualify for an exemption from the franchise tax
1-19     under Section 171.060; and
1-20                 (4)  meet the requirements of a charitable organization
1-21     provided by Sections 11.18(e) and (f), for which purpose the
1-22     functions for which the association is organized are considered to
1-23     be charitable functions.
1-24           SECTION 2.  This Act takes effect January 1, 2002, and
 2-1     applies only to taxes imposed for a tax year that begins on or
 2-2     after that date.