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AN ACT
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relating to the exemption from ad valorem taxation of certain |
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property acquired to provide low-income housing or used for |
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charitable purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.181(b), Tax Code, is amended to read |
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as follows: |
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(b) Property may not be exempted under Subsection (a) after |
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the fifth [third] anniversary of the date the organization acquires |
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the property. |
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SECTION 2. (a) Section 11.184, Tax Code, is amended by |
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amending Subsection (c) and adding Subsections (l), (m), and (n) to |
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read as follows: |
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(c) A [If approved under Subsection (b), a] qualified |
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charitable organization is entitled to an exemption from taxation |
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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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(l) Notwithstanding the other provisions of this section, a |
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corporation that is not a qualified charitable organization is |
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entitled to an exemption from taxation of property under this |
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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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(b) Section 11.184(b), Tax Code, is repealed. |
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(c) This section applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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section. |
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(d) This section takes effect January 1, 2010. |
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SECTION 3. This Act does not make an appropriation. A |
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provision in this Act that creates a new governmental program, |
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creates a new entitlement, or imposes a new duty on a governmental |
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entity is not mandatory during a fiscal period for which the |
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legislature has not made a specific appropriation to implement the |
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provision. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2555 was passed by the House on April |
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22, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2555 on May 31, 2009, by the following vote: Yeas 143, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2555 was passed by the Senate, with |
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amendments, on May 26, 2009, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |