78R8572 JD-D

By:  Hunter                                                       H.B. No. 3050



A BILL TO BE ENTITLED

AN ACT

relating to excepting land of certain charitable organizations from 
the additional tax imposed on the change of use of land appraised 
for ad valorem tax purposes as open-space land.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 23.55, Tax Code, is amended by adding 
Subsection (m) to read as follows:
	(m)  The sanctions provided by Subsection (a) do not apply to 
land owned by an organization that qualifies as a charitable 
organization under Section 11.18(c), is organized exclusively to 
perform religious or charitable purposes, and engages in performing 
the charitable functions described by Section 11.18(d)(19), if the 
organization converts the land to a use for which the land is 
eligible for an exemption under Section 11.18(d)(19) within five 
years.
	SECTION 2.  Section 23.55(m), Tax Code, as added by this Act, 
applies to a change of use of land that occurs on or after the 
effective date of this Act.  A change of use of land that occurred 
before the effective date of this Act is governed by the law in 
effect when the change of use occurred, and the former law is 
continued in effect for that purpose.
	SECTION 3.  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.