78R3848 RCJ-D
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 by a religious organization for purposes of expanding a
religious facility or constructing a new religious facility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.20, Tax Code, is amended by amending
Subsection (a) and adding Subsections (h) and (i) to read as
follows:
(a) 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 religious
organization, is used primarily as a place of regular religious
worship, and is reasonably necessary for engaging in religious
worship;
(2) the tangible personal property that is owned by
the religious organization and is reasonably necessary for engaging
in worship at the place of worship specified in Subdivision (1) of
this subsection;
(3) 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) 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 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 the religious organization 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; and
(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.
(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 Section
(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 2. 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; or
(3) a transfer of property to the state or a political
subdivision of the state to be used for a public purpose.
SECTION 3. This Act takes effect January 1, 2004, and
applies only to a tax year that begins on or after that date, but
only if the constitutional amendment proposed by the 78th
Legislature, Regular Session, 2003, to authorize the legislature to
exempt from ad valorem taxation land owned by a religious
organization for purposes of expanding or constructing a religious
facility is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.
COMMITTEE AMENDMENT NO. 1
Amend H.B. No. 1278 as follows:
(1) On page 4, line 18, strike "or".
(2) On page 4, line 20, strike the period and substitute ";
or".
(3) On page 4, between lines 20 and 21, insert the
following:
(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.
McReynolds