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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation for property |
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owned by a religious organization for purposes of expanding a |
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religious facility or constructing a new religious facility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.20(j), Tax Code, is amended to read as |
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follows: |
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(j) A tract of land that is contiguous to the tract of land |
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on which the religious organization's place of regular religious |
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worship is located may not be exempted under Subsection (a)(6) for |
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more than 15 [six] years if the tract of land does not exceed three |
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acres or for more than 10 years if the tract of land exceeds three |
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acres. A tract of land that is not contiguous to the tract of land |
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on which the religious organization's place of regular religious |
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worship is located may not be exempted under Subsection (a)(6) for |
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more than five [three] years. For purposes of this subsection, a |
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tract of land is considered to be contiguous with another tract of |
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land if the tracts are divided only by a road, railroad track, |
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river, or stream. |
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SECTION 2. Sections 11.201(a) and (e), Tax Code, are |
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amended to read as follows: |
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(a) If land is sold or otherwise transferred to another |
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person in a year in which the land receives an exemption under |
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Section 11.20(a)(6), an additional tax is imposed on the land equal |
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to the tax that would have been imposed on the land had the land been |
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taxed for each of the seven [five] years preceding the year in which |
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the sale or transfer occurs in which the land received an exemption |
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under that subsection, plus interest at an annual rate of seven |
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percent calculated from the dates on which the taxes would have |
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become due. |
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(e) The sanctions provided by Subsection (a) do not apply if |
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the sale or transfer occurs as a result of: |
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(1) a sale for right-of-way; |
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(2) a condemnation; |
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(3) a transfer of property to the state or a political |
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subdivision of the state to be used for a public purpose; [or] |
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(4) a transfer of property to a religious organization |
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that qualifies the property for an exemption under Section 11.20 |
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for the tax year in which the transfer occurs; or |
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(5) a transfer of property to an educational, |
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religious, charitable, or other similar organization that is |
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qualified as a charitable organization under Section 501(c)(3), |
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Internal Revenue Code of 1986. |
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SECTION 3. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2008. |