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 * * * * *