By: Ogden S.B. No. 914
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain educational facilities and housing facilities
1-3 owned by higher education authorities or by certain nonprofit
1-4 entities.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 53.46, Education Code, is amended to read
1-7 as follows:
1-8 Sec. 53.46. EXEMPTION [AUTHORITY EXEMPT] FROM TAXATION.
1-9 (a) An educational facility or housing facility is exempt from
1-10 taxation if the facility qualifies for an exemption under
1-11 Subsection (b), (c), or (d).
1-12 (b) An educational facility or housing facility is exempt
1-13 from taxation if the facility is owned by an authority, by a
1-14 corporation created under Section 53.35(b), or by a nonprofit
1-15 foundation created on behalf of an institution of higher education,
1-16 an accredited primary or secondary school, or an authorized charter
1-17 school, if the facility is financed in whole or in part under this
1-18 chapter, and if the facility:
1-19 (1) is held for the exclusive benefit of an
1-20 institution of higher education, an accredited primary or secondary
1-21 school, or an authorized charter school that has, by official
1-22 action under this section, approved that ownership and financing;
1-23 (2) is held for the exclusive use of the students,
1-24 faculty, and staff members of the benefited institution or school;
1-25 and
2-1 (3) would be exempt from taxation under other
2-2 applicable law if the facility were owned by the institution or
2-3 school.
2-4 (c) An educational facility or housing facility owned or
2-5 leased by an institution of higher education, by an accredited
2-6 primary or secondary school, or by an authorized charter school
2-7 that is financed in whole or in part under this chapter is exempt
2-8 from taxation if it is exempt from taxation under other applicable
2-9 law.
2-10 (d) A housing facility is exempt from taxation by a taxing
2-11 unit if:
2-12 (1) the facility is owned by an authority created by a
2-13 municipality, or by a corporation created under Section 53.35(b) by
2-14 a municipality, or created on behalf of an institution of higher
2-15 education, an accredited primary or secondary school, or an
2-16 authorized charter school and if the facility is financed or
2-17 acquired in whole or in part under this chapter; and
2-18 (2) all net revenues derived from the facility are
2-19 devoted exclusively to the granting of scholarships in the form of
2-20 reduced room and board or room or board charges or in other lawful
2-21 forms.
2-22 (e) Subsection (d) shall only apply to an authority or
2-23 nonprofit corporation created or to be created under this chapter
2-24 by a city if an authority or nonprofit corporation created by the
2-25 same city had granted room and board scholarships prior to
2-26 September 1, 2001, to students residing in facilities owned by the
3-1 authority or nonprofit corporation.
3-2 (f) If a housing facility exempt under Subsection (d)(2)
3-3 fails to award scholarships having a value at least equal to the
3-4 amount of ad valorem taxes that would have been owed if the
3-5 facility had not been exempt, the facility shall make a payment in
3-6 the amount of the taxes that would be due, if taxes would have been
3-7 owed, for the proportional benefit of the applicable taxing
3-8 jurisdictions in the amount of the difference between the value of
3-9 the scholarships and the taxes which otherwise would have been
3-10 payable. For purposes of determining the value of scholarships
3-11 described in this subsection, a scholarship shall be valued at the
3-12 same amount that is charged to a non-scholarship-recipient residing
3-13 at the same facility who receives substantially the same benefits
3-14 as the scholarship recipient. This provision may not alter an
3-15 existing agreement in existence prior to September 1, 2001, without
3-16 permission of the affected taxing authority. The local taxing unit
3-17 shall determine the amount of the difference between the value of
3-18 the scholarships and the taxes that would have been payable.
3-19 [Because the property owned by authority will be held for
3-20 educational purposes only and will be devoted exclusively to the
3-21 use and benefit of the students, faculty, and staff members of an
3-22 accredited institution of higher education, it is exempt from
3-23 taxation of every character.]
3-24 SECTION 2. Subchapter C, Chapter 53, Education Code, is
3-25 amended by adding Section 53.461 to read as follows:
3-26 Sec. 53.461. TAX REBATE. (a) A housing facility is
4-1 eligible for a rebate of the ad valorem property taxes paid to a
4-2 taxing unit as defined by Section 1.04, Tax Code, if:
4-3 (1) the facility is owned by an authority, by a
4-4 corporation created under Section 53.35(b), or by a nonprofit
4-5 foundation created on behalf of an institution of higher education,
4-6 an accredited primary or secondary school, or an authorized charter
4-7 school;
4-8 (2) the facility is financed in whole or in part under
4-9 this chapter; and
4-10 (3) all net revenues derived from the facility are
4-11 devoted exclusively to the granting of scholarships in the form of
4-12 reduced room and board charges or in other lawful forms.
4-13 (b) The governing body of the taxing unit shall determine the
4-14 amount of the rebate except that the amount of the rebate in any
4-15 year may not exceed the lesser of:
4-16 (1) the amount of ad valorem taxes paid to the taxing
4-17 unit in that year; or
4-18 (2) the fair market value of scholarships awarded
4-19 under Subsection (a)(3) in the preceding year.
4-20 SECTION 3. This Act takes effect immediately if it receives
4-21 a vote of two-thirds of all the members elected to each house, as
4-22 provided by Section 39, Article III, Texas Constitution. If this
4-23 Act does not receive the vote necessary for immediate effect, this
4-24 Act takes effect September 1, 2001.