H.B. 3291 78(R)    BILL ANALYSIS


H.B. 3291
By: Krusee
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Some religious organizations have encountered difficulties in the
completion of church or religious education buildings, particularly with
regard to complex environmental, architectural, and building code
requirements that can result in delays beyond the three-year limitation.
These situations have resulted in the exemptions being removed and leaving
some religious organizations owing substantial tax bills.  Current law
requires that the construction be complete in three years.  If it is not
completed, the exemption is removed, regardless of the status of the
construction or efforts that were made to finish the project. 

HB 3291 would allow the chief appraiser flexibility to allow a religious
organization that is making substantial progress, yet having a legitimate
problem in completing an improvement, additional time to complete its work
and maintain its exemption.  The chief appraiser could grant three annual
extensions to meet the needs of organizations that are making progress in
completing the construction of their facilities. 


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

HB 3291 amends Section 11.20, Tax Code, Subsection (f) and adds subsection
(h) to assist religious organizations that have received an exemption
under subsection (a)(5).  This subsection permits an incomplete
improvement under construction or other physical preparation, along with
land necessary for the improvement, to qualify by May 1st for a one year
extension of the exemption with no more than three extensions of the
period for which the property may be exempted.  

EFFECTIVE DATE

This Act takes effect January 1, 2004, and applies only to a tax year that
begins on or after that date.