79R2880 MFC-D

By:  Berman                                                       H.B. No. 726


A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of property owned by certain law enforcement officer associations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by adding Section 11.235 to read as follows: Sec. 11.235. LAW ENFORCEMENT OFFICER ASSOCIATIONS. (a) This section applies only to property located in a county with a population of less than 250,000. (b) An association that qualifies as a law enforcement officer association is entitled to an exemption from taxation of the real and tangible personal property that: (1) is owned by the association; and (2) except as provided by Subsection (c), is used exclusively by qualified law enforcement officer associations. (c) Use of exempt property owned by a person who is not qualified as a law enforcement officer association under this section does not result in the loss of an exemption authorized by this section if the use is incidental to use of the property by qualified law enforcement officer associations and is limited to activities that benefit the beneficiaries or members of the qualified law enforcement officer associations that own or use the property. (d) To qualify as a law enforcement officer association under this section, an association must: (1) be organized and operated primarily to engage in one or both of the following functions: (A) providing assistance with medical care costs to peace officers and their families or dependents, including surviving family members or dependents of deceased peace officers, without regard to the beneficiaries' ability to pay; or (B) providing support and relief to the dependents, spouses, or children of peace officers, including surviving dependents, spouses, or children of deceased peace officers; and (2) meet the requirements of a charitable organization provided by Sections 11.18(e) and (f). SECTION 2. Section 11.42(d), Tax Code, is amended to read as follows: (d) A person who acquires property after January 1 of a tax year may receive an exemption authorized by Section 11.17, 11.18, 11.19, 11.20, 11.21, 11.23, 11.235, or 11.30 for the applicable portion of that tax year immediately on qualification for the exemption. SECTION 3. Section 11.43(c), Tax Code, is amended to read as follows: (c) An exemption provided by Section 11.13, 11.17, 11.18, 11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), (j), or (j-1), 11.235, 11.29, 11.30, or 11.31, once allowed, need not be claimed in subsequent years, and except as otherwise provided by Subsection (e), the exemption applies to the property until it changes ownership or the person's qualification for the exemption changes. However, the chief appraiser may require a person allowed one of the exemptions in a prior year to file a new application to confirm the person's current qualification for the exemption by delivering a written notice that a new application is required, accompanied by an appropriate application form, to the person previously allowed the exemption. SECTION 4. Subchapter C, Chapter 11, Tax Code, is amended by adding Section 11.4351 to read as follows: Sec. 11.4351. APPLICATION FOR LAW ENFORCEMENT OFFICER ASSOCIATION EXEMPTION FOR PRIOR YEAR. (a) A law enforcement officer association may apply for an exemption under Section 11.235 for a tax year after the 2000 tax year and before the 2006 tax year at any time. The filing deadline provided by Section 11.43 does not apply to an application filed under this section. (b) The chief appraiser may not approve an application for an exemption filed under this section if the taxes imposed on the property for the year for which the exemption is claimed are paid before the application is filed. (c) If an application is approved under this section after approval of the appraisal records for the year for which the exemption is granted, the chief appraiser shall notify the collector for each taxing unit in which the property was taxable in the year for which the exemption is granted. The collector shall deduct from the organization's tax bill the amount of tax imposed on the property for that year if the tax has not been paid and any unpaid penalties and accrued interest relating to that tax. The collector may not refund taxes, penalties, or interest paid on the property for which an exemption is granted under this section. (d) The chief appraiser shall grant an exemption for property pursuant to an application filed under this section if the property would have qualified for the exemption in the tax year for which the exemption is claimed under Section 11.235, Tax Code, as that section existed on January 1, 2006, if that section had been in effect in the tax year for which the exemption is claimed. (e) Sections 11.43(c) and (e) do not apply to an application filed under this section. A separate application must be filed for each tax year under this section. (f) This section expires January 1, 2008. SECTION 5. This Act applies to taxes imposed for a tax year that begins on or after January 1, 2001. SECTION 6. This Act takes effect January 1, 2006, but only if the constitutional amendment proposed by the 79th Legislature, Regular Session, 2005, authorizing the legislature to exempt from ad valorem taxation property owned by certain nonprofit law enforcement officer associations is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.