78R7057 JD-F

By:  Hegar                                                        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 adding 
Subsections (h) and (i) to read as follows:
	(h)  Property owned by this state, a political subdivision of 
this state, or the United States, 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.