BILL ANALYSIS

H.B. 589

By: Naishtat

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

KMFA is a local radio station in Austin, Texas that broadcasts classical music and serves as a local portal for information on the symphonic and performing arts.  Although the station is registered as a 501(c)(3) charitable organization and serves a similar function as a local public television station or a performing arts organization, it is not afforded the same property tax exemption as those organizations under current law. This bill only affects KMFA in Austin and does not provoke any opposition from the City of Austin, which estimates the loss of revenue to the city to be minimal.

H.B. 589 exempts from property taxes a radio station that broadcasts educational, cultural, or other public interest programming, including classical music, and that in the preceding five years has received or been selected to receive one or more grants from the Corporation for Public Broadcasting. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 589 reenacts and amends Section 11.18(d), Tax Code, as amended by Chapters 1034 (H.B. 1742) and 1341 (S.B. 1908), Acts of the 80th Legislature, Regular Session, 2007, to exempt from property taxation, as a charitable function performed by a qualifying charitable organization, the operation of a radio station that broadcasts educational, cultural, or other public interest programming, including classical music, and that in the preceding five years has received or been selected to receive one or more grants from the Corporation for Public Broadcasting.

H.B. 589 reenacts and amends Section 11.18(o), Tax Code, as added by Chapters 1034 (H.B. 1742) and 1341 (S.B. 1908), Acts of the 80th Legislature, Regular Session, 2007, to make a technical correction.

EFFECTIVE DATE

January 1, 2010.