SRC-TJG S.B. 1543 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1543
By: Janek
Finance
3/31/2003
As Filed


DIGEST AND PURPOSE 

Currently, property owned by the State of Texas or a political subdivision
thereof is exempt from taxation if the property is used for public
purposes.  Use of public property by a religious organization does not
fall within the definition of use for public purposes.  As proposed, S.B.
1543 provides an exemption from taxation for property that is owned by the
State of Texas or a political subdivision thereof but leased to a
religious organization and used by a religious organization in a manner
that would qualify the property as exempt from taxation if the property
was owned by the religious organization. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 11.20(d), Tax Code, to make a conforming change.

SECTION 2.  Amends Section 11.20, Tax Code, by adding Subsection (h), to
provide that property owned by the state or a political subdivision
thereof, including any leasehold or other possessory interest held by a
religious organization therein, is exempt from taxation if the property is
used primarily as a place of regular religious worship and is reasonably
necessary for engaging in religious worship or if the property would
otherwise meet the requirements of Subdivision (A) and Subdivision (B) of
Section 5 of this section if the property were owned by the religious
organization. 

SECTION 3.  Effective date: upon passage or September 1, 2003.