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A BILL TO BE ENTITLED
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AN ACT
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relating to qualification for the exemption from ad valorem |
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taxation for property of organizations engaged primarily in |
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performing charitable functions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.184, Tax Code, is amended by adding |
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Subsections (l), (m), and (n) to read as follows: |
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(l) Notwithstanding the other provisions of this section, |
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if the exemption authorized by this section is approved under |
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Subsection (b), a corporation that is not a qualified charitable |
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organization is entitled to an exemption from taxation of property |
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under this section if: |
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(1) the corporation is exempt from federal income |
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taxation under Section 501(a), Internal Revenue Code of 1986, by |
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being listed as an exempt entity under Section 501(c)(2) of that |
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code; |
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(2) the corporation holds title to the property for, |
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collects income from the property for, and turns over the entire |
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amount of that income, less expenses, to a qualified charitable |
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organization; and |
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(3) the qualified charitable organization would |
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qualify for an exemption from taxation of the property under this |
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section if the qualified charitable organization owned the |
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property. |
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(m) Before a corporation described by Subsection (l) may |
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submit an application for an exemption under this section, the |
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qualified charitable organization for which the corporation holds |
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title to the property must apply to the comptroller for the |
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determination described by Subsection (e) with regard to the |
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qualified charitable organization. The application for the |
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determination must also include an application to the comptroller |
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for a determination of whether the corporation meets the |
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requirements of Subsections (l)(1) and (2). The corporation shall |
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submit with the application for an exemption under this section a |
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copy of the determination letter issued by the comptroller. The |
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chief appraiser shall accept the copy of the letter as conclusive |
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evidence of the matters described by Subsection (h) as well as of |
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whether the corporation meets the requirements of Subsections |
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(l)(1) and (2). |
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(n) Notwithstanding Subsection (k), in order for a |
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corporation to continue to receive an exemption under Subsection |
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(l) after the fifth tax year after the year in which the exemption |
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is granted, the qualified charitable organization for which the |
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corporation holds title to property must obtain a new determination |
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letter and the corporation must reapply for the exemption. |
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SECTION 2. 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 3. This Act takes effect January 1, 2008. |