By:  Hochberg                                                     H.B. No. 2416



A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation for property of 
certain nonprofit organizations while improvements are under 
construction.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Effective September 1, 2003, Subsection 
11.18(m), Tax Code, is amended to read as follows:
	(m)  A property may not be exempted under Subsection (a)(2) 
for more than [three] six years.
	SECTION 2.  Effective December 31, 2006, Subsection 
11.18(m), Tax Code, is amended to read as follows:
	(m)  A property may not be exempted under Subsection (a)(2) 
for more than three years.
	SECTION 3.  Effective September 1, 2003, Subsection 
11.184(i), Tax Code, as added by Chapter 1040, Acts of the 77th 
Legislature, Regular Session, 2001, is amended to read as follows:
	(i)  A property may not be exempted under Subsection (c)(2) 
for more than [three] six years.
	SECTION 4.  Effective December 31, 2006, Subsection 
11.184(i), Tax Code, as added by Chapter 1040, Acts of the 77th 
Legislature, Regular Session, 2001, is amended to read as follows:
	(i)  A property may not be exempted under Subsection (c)(2) 
for more than three years.
	SECTION 5.  Effective September 1, 2003, Subsection 
11.19(e), Tax Code, is amended to read as follows:
	(e)  A property may not be exempted under Subsection (a)(2) 
for more than [three] six years.
	SECTION 6.  Effective December 31, 2006, Subsection 
11.19(e), Tax Code, is amended to read as follows:
	(e)  A property may not be exempted under Subsection (a)(2) 
for more than three years.
	SECTION 7.  Effective September 1, 2003, Subsection 
11.20(f), Tax Code, is amended to read as follows:
	(f)  A property may not be exempted under Subsection (a)(5) 
for more than [three] six years.
	SECTION 8.  Effective December 31, 2006, Subsection 
11.20(f), Tax Code, is amended to read as follows:
	(f)  A property may not be exempted under Subsection (a)(5) 
for more than three years.
	SECTION 9.  Effective September 1, 2003, Subsection 
11.21(g), Tax Code, is amended to read as follows:
	(g)  A property may not be exempted under Subsection (a)(2) 
for more than [three] six years.
	SECTION 10.  Effective December 31, 2006, Subsection 
11.21(g), Tax Code, is amended to read as follows:
	(g)  A property may not be exempted under Subsection (a)(2) 
for more than three years.
	SECTION 11.  Effective September 1, 2003, Subsection 
11.23(l), Tax Code, is amended to read as follows:
		(l)  Incomplete Improvements.  A person described by 
Subsection (a)-(e), (g), or (i)-(k) is entitled to an exemption 
from taxation of the real property owned by the person consisting of 
an incomplete improvement that is under active construction or 
other physical preparation and that is designed and intended to be 
used by the person for a purpose described by that subsection when 
complete and the land on which the incomplete improvement is 
located that will be reasonably necessary for the person's use of 
the improvement for that purpose.  A property may not be exempted 
under this subsection for more than [three] six years.  For purposes 
of this subsection, an incomplete improvement is under physical 
preparation if the person has:
	SECTION 12.  Effective December 31, 2006, Subsection 
11.23(l), Tax Code, is amended to read as follows:
		(l)  Incomplete Improvements.  A person described by 
Subsection (a)-(e), (g), or (i)-(k) is entitled to an exemption 
from taxation of the real property owned by the person consisting of 
an incomplete improvement that is under active construction or 
other physical preparation and that is designed and intended to be 
used by the person for a purpose described by that subsection when 
complete and the land on which the incomplete improvement is 
located that will be reasonably necessary for the person's use of 
the improvement for that purpose.  A property may not be exempted 
under this subsection for more than three years.  For purposes of 
this subsection, an incomplete improvement is under physical 
preparation if the person has:
	SECTION 13.  Effective September 1, 2003, Subsection 
11.30(b), Tax Code, is amended to read as follows:
	(b)  A property may not be exempted under Subsection (a)(2) 
for more than [three] six years.
	SECTION 14.  Effective December 31, 2006, Subsection 
11.30(b), Tax Code, is amended to read as follows:
	(b)  A property may not be exempted under Subsection (a)(2) 
for more than three years.
	SECTION 15.  This Act takes effect immediately if it 
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, this Act takes effect September 1, 2003.