BILL ANALYSIS
By: Barrientos
Local Government Ways & Means
BACKGROUND AND PURPOSE
Currently, public television stations in Texas such as Austin's KLRU are granted an exemption from ad valorem taxes if they produce or broadcast educational, cultural or other public interest programming. Similar provisions in the Tax Code provide an exemption from ad valorem taxes to charitable organizations that promote the performing arts, including symphony orchestra performances. Listener-supported "co-op" radio stations in Texas provide educational and public interest programming similar to public television and also serve their respective arts communities as primary sources for cultural news and entertainment.
S.B. 1020 extends the exemption from ad valorem taxes to a co-op radio station that provides public interest programming and is registered as a 501(c)(3) charitable organization.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
SECTION 1. Amends Section 11.18(d), Tax Code, to require a charitable organization to be organized exclusively to perform religious, charitable, scientific, literary, or educational purposes and, except as permitted by Subsections (h) and (1), to engage exclusively in performing specific charitable functions, including operating a radio station that broadcasts educational, cultural, or other public interest programming, including classical music, and that is funded entirely through donations made by listeners or other donors.
SECTION 2. Makes application of this Act to prospective.
SECTION 3. Effective date: January 1, 2006.
EFFECTIVE DATE
January 1, 2006.