By: Wentworth S.B. No. 1296

(In the Senate - Filed March 7, 2007; March 19, 2007, read first time and referred to Committee on Finance; April 30, 2007, reported favorably by the following vote: Yeas 11, Nays 0; April 30, 2007, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to the exemption from ad valorem taxation of the property of organizations engaged primarily in performing charitable functions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (c), Section 11.184, Tax Code, is amended to read as follows:

(c) A [If approved under Subsection (b), a] qualified charitable organization is entitled to an exemption from taxation of:

(1) the buildings and other real property and the tangible personal property that:

(A) are owned by the organization; and

(B) except as permitted by Subsection (d), are used exclusively by the organization and other organizations eligible for an exemption from taxation under this section or Section 11.18; and

(2) the real property owned by the organization consisting of:

(A) an incomplete improvement that:

(i) is under active construction or other physical preparation; and

(ii) is designed and intended to be used exclusively by the organization and other organizations eligible for an exemption from taxation under this section or Section 11.18; and

(B) the land on which the incomplete improvement is located that will be reasonably necessary for the use of the improvement by the organization and other organizations eligible for an exemption from taxation under this section or Section 11.18.

SECTION 2. Subsection (b), Section 11.184, Tax Code, is repealed.

SECTION 3. This Act applies only to taxes imposed for a tax year beginning on or after the effective date of this Act.

SECTION 4. This Act takes effect January 1, 2008.

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