79R5681 SMH-D

By:  Fraser                                                       S.B. No. 744



A BILL TO BE ENTITLED

AN ACT

relating to the ad valorem tax status of a license to occupy a 
dwelling unit in a tax-exempt retirement community.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 23, Tax Code, is amended by 
adding Section 23.135 to read as follows:
	Sec. 23.135.  LICENSE TO OCCUPY DWELLING UNIT IN TAX-EXEMPT 
RETIREMENT COMMUNITY.  A license to occupy a dwelling unit in a 
retirement community that is exempt from taxation under Section 
11.18(d)(19) is not a taxable leasehold or other possessory 
interest in real property regardless of whether the occupant of the 
dwelling unit is required to pay a refundable or nonrefundable 
deposit or a periodic service fee under the contract granting the 
occupant the license to occupy the dwelling unit.
	SECTION 2.  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, 2005.