By: Zedler, et al. H.B. No. 1278
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation for property
owned or used by a religious organization for purposes of expanding
a religious facility or constructing a new religious facility and
to municipal platting requirements and zoning regulations
applicable to certain property owned or used by a religious
organization.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 211.003(b), Local Government Code, is
amended to read as follows:
(b) In the case of designated places and areas of
historical, cultural, or architectural importance and
significance, the governing body of a municipality may regulate the
construction, reconstruction, alteration, or razing of buildings
and other structures, other than a building or other structure that
is owned by a religious organization and is exempt from ad valorem
taxation under Section 11.20, Tax Code.
SECTION 2. Subchapter A, Chapter 212, Local Government
Code, is amended by adding Section 212.0047 to read as follows:
Sec. 212.0047. EXCEPTION TO PLAT REQUIREMENT: TAX-EXEMPT
RELIGIOUS ORGANIZATION PROPERTY. (a) An owner of an unplatted
tract of land that is exempt from ad valorem taxation under Section
11.20, Tax Code, is not required to prepare a plat to obtain a
building permit or any other permit for developing the tract.
(b) If the property loses its exemption from taxation under
Section 11.20, Tax Code, the owner of the property must comply with
all applicable platting requirements.
SECTION 3. Subchapter B, Chapter 212, Local Government
Code, is amended by adding Section 212.0415 to read as follows:
Sec. 212.0415. APPLICATION OF SUBCHAPTER TO TAX-EXEMPT
RELIGIOUS ORGANIZATION PROPERTY. This subchapter does not apply to
an unplatted tract of land that is exempt from ad valorem taxation
under Section 11.20, Tax Code. If the property loses its exemption
from taxation under Section 11.20, Tax Code, this subchapter begins
to apply to the property on the day after the date on which the
exemption is lost.
SECTION 4. Section 12.002, Property Code, is amended by
adding Subsection (h) to read as follows:
(h) Notwithstanding this section, a person may file for
record or have recorded in the county clerk's office a plat if the
plat is exempted from approval under Section 212.0047, Local
Government Code. An unapproved plat must be stamped "unapproved
plat" by the county clerk or a deputy of the clerk before it may be
filed, and the clerk or deputy shall note on the plat that the
property was exempt under Section 212.0047, Local Government Code.
SECTION 5. Section 11.20, Tax Code, is amended by amending
Subsections (a) and (g) and adding Subsections (h) and (i) 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;
(6) the land that the religious organization owns for
the purpose of expansion of the religious organization's place of
regular religious worship or construction of a new place of regular
religious worship if:
(A) the religious organization qualifies other
property, including a portion of the same tract or parcel of land,
owned by the organization for an exemption under Subsection (a)(1)
or (5); and
(B) the land produces no revenue for the
religious organization; and
(7) the real property that is owned by the religious
organization if the real property is leased to another person and is
used by that person for the operation of a school that qualifies as
a school under Section 11.21(d).
(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.
(h) A tract of land that is not contiguous to the tract of
land on which the religious organization's place of regular
religious worship is located may not be exempted under Subsection
(a)(6) for more than three years. For purposes of this subsection,
a tract of land is considered to be contiguous with another tract of
land if the tracts are divided only by a road, railroad track,
river, or stream.
(i) For purposes of Subsection (a)(6), an application or
statement accompanying an application for the exemption stating
that the land is owned for the purposes described by Subsection
(a)(6) and signed by an authorized officer of the organization is
sufficient to establish that the land is owned for those purposes.
SECTION 6. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.201 to read as follows:
Sec. 11.201. ADDITIONAL TAX ON SALE OF CERTAIN RELIGIOUS
ORGANIZATION PROPERTY. (a) If land is sold or otherwise
transferred to another person in a year in which the land receives
an exemption under Section 11.20(a)(6), an additional tax is
imposed on the land equal to the tax that would have been imposed on
the land had the land been taxed for each of the five years
preceding the year in which the sale or transfer occurs in which the
land received an exemption under that subsection, plus interest at
an annual rate of seven percent calculated from the dates on which
the taxes would have become due.
(b) A tax lien attaches to the land on the date the sale or
transfer occurs to secure payment of the tax and interest imposed by
this section and any penalties incurred. The lien exists in favor
of all taxing units for which the tax is imposed.
(c) If only part of a parcel of land that is exempted under
Section 11.20(a)(6) is sold or transferred, the tax applies only to
that part of the parcel and equals the taxes that would have been
imposed had that part been taxed.
(d) The assessor for each taxing unit shall prepare and
deliver a bill for the additional taxes plus interest as soon as
practicable after the sale or transfer occurs. The taxes and
interest are due and become delinquent and incur penalties and
interest as provided by law for ad valorem taxes imposed by the
taxing unit if not paid before the next February 1 that is at least
20 days after the date the bill is delivered to the owner of the
land.
(e) The sanctions provided by Subsection (a) do not apply if
the sale or transfer occurs as a result of:
(1) a sale for right-of-way;
(2) a condemnation;
(3) a transfer of property to the state or a political
subdivision of the state to be used for a public purpose; or
(4) a transfer of property to a religious organization
that qualifies the property for an exemption under Section 11.20
for the tax year in which the transfer occurs.
SECTION 7. (a) Section 1 of this Act takes effect
immediately if this Act receives a vote of two-thirds of all the
members elected to each house, as provided by Section 39, Article
III, Texas Constitution. If this Act does not receive the vote
necessary for immediate effect, Section 1 of this Act takes effect
September 1, 2003.
(b) Sections 2–4 of this Act take effect September 1, 2003.
(c) Sections 11.20(a)(1)-(5) and (g), Tax Code, as amended
by this Act, take effect January 1, 2004, and apply only to ad
valorem taxes imposed for a tax year that begins on or after that
date.
(d) Sections 11.20(a)(6) and (7), (h), and (i), and Section
11.201, Tax Code, as added by this Act, take effect January 1, 2004,
but only if the constitutional amendment proposed by the 78th
Legislature, Regular Session, 2003, to authorize the legislature to
exempt from ad valorem taxation property owned by a religious
organization that is leased for use as a school or that is owned
with the intent of expanding or constructing a religious facility
is approved by the voters. If that amendment is not approved by the
voters, Sections 11.20(a)(6) and (7), (h), and (i), and Section
11.201, Tax Code, as added by this Act, have no effect.