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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation of certain real |
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property owned by a nonprofit hospital or hospital system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.1801, Tax Code, is amended by adding |
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Subsections (k) through (r) to read as follows: |
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(k) This subsection and Subsections (l)-(r) apply only in |
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connection with real property that is owned by a nonprofit hospital |
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or hospital system and consists of: |
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(1) unimproved land on which an improvement is |
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proposed to provide charity care and community benefits as required |
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by this section; |
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(2) land on which is located an improvement or |
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incomplete improvement that is under physical preparation within |
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the meaning of Section 11.18(n); or |
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(3) land and an improvement on the land that is not |
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currently used to provide charity care and community benefits as |
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required by this section but is intended to be used for that purpose |
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or to be converted or reconstructed for that purpose. |
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(l) Notwithstanding Section 11.43(c), a person claiming an |
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exemption under 11.18(d)(1) for property to which this section |
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applies must apply each year for the exemption. In applying for the |
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exemption, a person seeking the exemption shall present a request |
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to the commissioner of the Department of State Health Services |
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detailing, as applicable: |
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(1) the proposed use of the land, the improvement, or |
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the incomplete improvement; or |
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(2) the proposed use of the land or the improvement |
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after conversion or reconstruction. |
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(m) Following submission of the information required by |
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Subsection (l), the commissioner of the Department of State Health |
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Services shall determine if the land or improvement qualifies for |
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an exemption under Section 11.18(d)(1). As soon as practicable, |
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the commissioner shall send notice by regular mail to the chief |
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appraiser of the appraisal district for the county in which the |
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property is located that the person has applied for a determination |
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under this subsection. The commissioner shall issue a letter to the |
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person stating the commissioner's determination of whether the |
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land or improvement qualifies for the exemption and send a copy of |
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the letter by regular mail to the chief appraiser of the appraisal |
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district for the county in which the property is located. |
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(n) Not later than the 20th day after the date of receipt of |
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the letter issued by the commissioner of the Department of State |
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Health Services, the person seeking the exemption or the chief |
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appraiser may appeal the commissioner's determination to the |
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executive commissioner of the Health and Human Services Commission. |
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The executive commissioner of the Health and Human Services |
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Commission shall consider the appeal as soon as practicable. The |
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person seeking the determination and the chief appraiser may |
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testify before the executive commissioner. The executive |
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commissioner of the Health and Human Services Commission may remand |
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the matter to the commissioner of the Department of State Health |
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Services for a new determination or deny the appeal and affirm the |
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determination of the commissioner of the Department of State Health |
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Services. On issuance of a new determination, the commissioner of |
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the Department of State Health Services shall issue a letter to the |
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person seeking the determination and provide a copy to the chief |
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appraiser as provided by Subsection (m). A new determination of the |
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commissioner of the Department of State Health Services may be |
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appealed to the executive commissioner of the Health and Human |
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Services Commission in the manner provided by this subsection. A |
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proceeding under this subsection is not a contested case for |
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purposes of Chapter 2001, Government Code. |
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(o) The commissioner of the Department of State Health |
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Services may charge a person seeking a determination that the |
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property qualifies for the exemption a fee not to exceed the |
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commissioner's administrative costs for processing the |
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information, making the determination, and issuing the letter |
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required by this section. |
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(p) The executive commissioner of the Health and Human |
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Services Commission shall adopt rules to implement this section. |
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Rules adopted under this section must: |
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(1) establish specific standards for considering |
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applications for determinations; and |
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(2) be sufficiently specific to ensure that |
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determinations are equal and uniform. |
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(q) The commissioner of the Department of State Health |
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Services may not make a determination that property qualifies for |
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an exemption under Section 11.18(d)(1) unless the property meets |
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the standards established under rules adopted under Subsection (p). |
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(r) A person seeking an exemption under Section 11.18(d)(1) |
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shall provide to the chief appraiser a copy of the letter issued by |
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the commissioner of the Department of State Health Services under |
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Subsection (m) determining that the property qualifies for the |
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exemption. The chief appraiser shall accept a final determination |
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by the commissioner of the Department of State Health Services as |
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conclusive evidence that the property qualifies for the exemption. |
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SECTION 2. This Act applies only to an ad valorem tax year |
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that begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |