78R10450 JD-F


By:  Hegar                                                        H.B. No. 2383

Substitute the following for H.B. No. 2383:                                   

By:  McReynolds                                               C.S.H.B. No. 2383



A BILL TO BE ENTITLED

AN ACT

relating to the eligibility for exemption from ad valorem taxation 
of public property used for certain religious purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.20, Tax Code, is amended by amending 
Subsection (d) and adding Subsections (h) and (i) to read as 
follows:
	(d)  Use of property that qualifies for the exemption 
prescribed by Subsection (a)(1) [Subdivision (1)] or (2) or by 
Subsection (h)(1) [of Subsection (a) of this section] for 
occasional secular purposes other than religious worship does not 
result in loss of the exemption if the primary use of the property 
is for religious worship and all income from the other use is 
devoted exclusively to the maintenance and development of the 
property as a place of religious worship.
	(h)  Property owned by this state or a political subdivision 
of this state, including a leasehold or other possessory interest 
in the property, that is held or occupied by an organization that 
qualifies as a religious organization as provided by Subsection (c) 
is entitled to an exemption from taxation if the property:
		(1)  is used by the organization primarily as a place of 
regular religious worship and is reasonably necessary for engaging 
in religious worship; or
		(2)  meets the qualifications for an exemption under 
Subsection (a)(5).
	(i)  For purposes of the exemption provided by Subsection 
(h), the religious organization may apply for the exemption and 
take other action relating to the exemption as if the organization 
owned the property.
	SECTION 2.  This Act takes effect January 1, 2004, and 
applies only to an ad valorem tax year that begins on or after that 
date.