2003S0607-1 03/12/03
By: Hinojosa S.B. No. 1773
A BILL TO BE ENTITLED
AN ACT
relating to exempting certain local nonprofit organizations from ad
valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.1841 to read as follows:
Sec. 11.1841. PROPERTY OF LOCAL NONPROFIT ORGANIZATION.
(a) Real property owned by a local nonprofit organization is
exempt from taxation.
(b) In this section, "local nonprofit organization" means
an organization that:
(1) qualifies as an organization exempt from federal
income taxes under Section 501(c)(3), Internal Revenue Code of
1986, as amended;
(2) meets the requirements of a charitable
organization under Section 11.18; and
(3) qualifies for an exemption from the franchise tax
under Chapter 171.
SECTION 2. Subsection (a), Section 11.43, Tax Code, is
amended to read as follows:
(a) To receive an exemption, a person claiming the
exemption, other than an exemption authorized by Section 11.11,
11.12, 11.14, 11.145, 11.146, 11.15, 11.16, 11.161, 11.1841, or
11.25 of this code, must apply for the exemption. To apply for an
exemption, a person must file an exemption application form with
the chief appraiser for each appraisal district in which the
property subject to the claimed exemption has situs.
SECTION 3. (a) This Act takes effect September 1, 2003.
(b) A local nonprofit organization may not receive an
exemption under Section 11.1841, Tax Code, as added by this Act,
before the tax year that begins January 1, 2004.
(c) The change in law made by this Act does not affect tax
liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.