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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirement that the exemption from ad valorem |
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taxation of property owned by an organization engaged primarily in |
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performing charitable functions be adopted by the governing body of |
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a taxing unit or at an election held in the taxing unit. |
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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 to read as |
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follows |
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(a) In this section: |
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(1) "Local charitable organization" means an |
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organization that: |
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(A) is a chapter, subsidiary, or branch of a |
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statewide charitable organization; and |
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(B) with respect to its activities in this state, |
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is engaged primarily in performing functions listed in Section |
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11.18(d). |
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(2) "Qualified charitable organization" means a |
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statewide charitable organization or a local charitable |
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organization. |
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(3) "Statewide charitable organization" means a |
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statewide organization that, with respect to its activities in this |
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state, is engaged primarily in performing functions listed in |
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Section 11.18(d). |
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(b) An exemption under this section may not be granted
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unless the exemption is adopted either:
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(1)by the governing body of the taxing unit; or
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(2) by a favorable vote of a majority of the qualified
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voters of the taxing unit at an election called by the governing
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body of a taxing unit, and the governing body shall call the
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election on the petition of at least 20 percent of the number of
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qualified voters who voted in the preceding election of the taxing
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unit.
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(c)If approved under Subsection
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(b), a qualified charitable organization is entitled to an |
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exemption from taxation of: |
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(1) the buildings and other real property and the |
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tangible personal property that: |
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(A) are owned by the organization; and |
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(B) except as permitted by Subsection (d), are |
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used exclusively by the organization and other organizations |
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eligible for an exemption from taxation under this section or |
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Section 11.18; and |
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(2) the real property owned by the organization |
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consisting of: |
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(A) an incomplete improvement that: |
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(i) is under active construction or other |
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physical preparation; and |
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(ii) is designed and intended to be used |
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exclusively by the organization and other organizations eligible |
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for an exemption from taxation under this section or Section 11.18; |
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and |
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(B) the land on which the incomplete improvement |
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is located that will be reasonably necessary for the use of the |
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improvement by the organization and other organizations eligible |
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for an exemption from taxation under this section or Section 11.18. |
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SECTION 2. This Act takes effect September 1, 2007. |