Amend HB 1278 by adding the following section, numbered
appropriately:
SECTION ___. (a) Sections 11.20(a) and (g), Tax Code, are
amended to read as follows:
(a) A person [An organization that qualifies as a religious
organization as provided by Subsection (c) of this section] is
entitled to an exemption from taxation of:
(1) the real property that is owned by the person
[religious organization], is used primarily as a place of regular
religious worship by an organization that qualifies as a religious
organization as provided by Subsection (c), and is reasonably
necessary for engaging in religious worship;
(2) the tangible personal property that is owned by
the person [religious organization] and is reasonably necessary for
engaging in worship at the place of worship specified in
Subdivision (1) [of this subsection];
(3) if the person qualifies as a religious
organization as provided by Subsection (c), the real property that
is owned by the religious organization and is reasonably necessary
for use as a residence (but not more than one acre of land for each
residence) if the property:
(A) is used exclusively as a residence for those
individuals whose principal occupation is to serve in the clergy of
the religious organization; and
(B) produces no revenue for the religious
organization;
(4) if the person qualifies as a religious
organization as provided by Subsection (c), the tangible personal
property that is owned by the religious organization and is
reasonably necessary for use of the residence specified by
Subdivision (3) [of this subsection]; and
(5) the real property owned by the person [religious
organization] consisting of:
(A) an incomplete improvement that is under
active construction or other physical preparation and that is
designed and intended to be used by an organization that qualifies
as a [the] religious organization as provided by Subsection (c) as a
place of regular religious worship when complete; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the religious
organization's use of the improvement as a place of regular
religious worship.
(g) For purposes of Subsection (a)(5), an incomplete
improvement is under physical preparation if the person [religious
organization] has engaged in architectural or engineering work,
soil testing, land clearing activities, or site improvement work
necessary for the construction of the improvement or has conducted
an environmental or land use study relating to the construction of
the improvement.
(b) This section takes effect January 1, 2004, and applies
only to ad valorem taxes imposed for a tax year that begins on or
after that date.