BILL ANALYSIS

Senate Research Center                                                                                                      S.B. 1591

81R3477 JE-D                                                                                                                  By: Ogden

Finance

3/30/2009

As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Charitable organizations that provide low-income housing have expressed concern that three years of tax exempt status is often not long enough to develop acquired property.

As proposed, S.B. 1591 prohibits property from being exempted after the fifth anniversary of the date the organization acquires the property.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 11.181(b), Tax Code, to prohibit property from being exempted under Subsection (a) (relating to an organization's entitlement to an exemption from taxation of improved or unimproved real property it owns if the organization meets certain criteria) after the fifth, rather than third, anniversary of the date the organization acquires the property.

SECTION 2.  Effective date:  upon passage or September 1, 2009.