1-1     By:  Ellis, Zbranek, Hilderbran                        H.B. No. 824
 1-2          (Senate Sponsor - Bernsen)
 1-3           (In the Senate - Received from the House May 11, 2001;
 1-4     May 11, 2001, read first time and referred to Committee on
 1-5     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-6     the following vote:  Yeas 6, Nays 0; May 11, 2001, sent to
 1-7     printer.)
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the exemption from ad valorem taxation of property
1-11     owned by certain nonprofit county fair associations.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 11.23, Tax Code, is amended by adding
1-14     Subsection (h) to read as follows:
1-15           (h)  County Fair Associations.  A county fair association
1-16     organized to hold agricultural fairs and encourage agricultural
1-17     pursuits is entitled to an exemption from taxation of the land and
1-18     buildings that it owns and  uses to hold agricultural fairs.  To
1-19     qualify for an exemption under this subsection, a county fair
1-20     association must:
1-21                 (1)  be a nonprofit corporation as defined by the Texas
1-22     Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
1-23     Texas Civil Statutes);
1-24                 (2)  be exempt from federal income taxes as an
1-25     organization described by Section 501(c)(3), (4), or (5), Internal
1-26     Revenue Code of 1986, as amended;
1-27                 (3)  qualify for an exemption from the franchise tax
1-28     under Section 171.060; and
1-29                 (4)  meet the requirements of a charitable organization
1-30     provided by Sections 11.18(e) and (f), for which purpose the
1-31     functions for which the association is organized are considered to
1-32     be charitable functions.
1-33           SECTION 2.  This Act takes effect January 1, 2002, and
1-34     applies only to taxes imposed for a tax year that begins on or
1-35     after that date.
1-36                                  * * * * *