H.B. 66 78(3)    BILL ANALYSIS


H.B. 66
By: Wong
Urban Affairs
Committee Report (Unamended)


          
BACKGROUND AND PURPOSE 

Currently, real and personal property held by a non-profit corporation for
use in the development of a medical center area or areas is exempt from
taxation if the property is used for public purposes. Under Section
11.23(j), property owned by a non-profit corporation is not exempt if
"leased or otherwise used with a view to profit." 

Under Section 11.23(j), the real and personal property of a non-profit
corporation which has donated land for a state medical, dental, or nursing
school, and for other hospital, medical, and educational uses, is exempt.
As proposed, the bill would allow such a non-profit corporation to use its
property for governmental or public purposes, including the relief of
traffic congestion. This change would allow a non-profit corporation which
has donated land for a state medical, dental, or nursing school, and for
other hospital, medical, and educational uses to use its real and personal
property to assist general public needs without jeopardizing its property
tax exemption or violating any deed restriction imposed on such lands. For
example, a non-profit corporation's parking garages could be used to
alleviate traffic congestion on certain events. Any revenues received by
the non-profit corporation for use of its real and personal property for
these purposes would be used to support the general public health, health
care, and medical educational purposes of the non-profit corporation.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Amends Section 11.23(j) to provides that the use of real and
personal property of a non-profit corporation, which has donated land for
a state medical, dental, or nursing school, and for other hospital,
medical, and educational uses, for governmental or public purposes,
including the relief of traffic congestion, remains exempt from ad valorem
taxation as a use reasonably related to hospital, medical, and educational
purposes. The bill further provides that such use will be considered
hospital, medical, or educational uses for purposes of any private deed
restriction imposed on such lands.  

SECTION 2. This Act takes effect on the 91st day after the last day of the
legislative session and applies only to the ad valorem taxation of
property for a tax year that begins after January 1, 2004. 

EFFECTIVE DATE

This Act takes effect on the 91st day after the last day of the
legislative session and applies only to the ad valorem taxation of
property for a tax year that begins after January 1, 2004.