BILL ANALYSIS

H.J.R. 86

By: Ritter

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that more than 100,000 Texas students currently attend charter schools and that a considerable majority of those charter schools lease their facilities. The parties contend that a charter school leasing its facilities often has to pay the property taxes imposed on the leased property because the landowner will include the amount of such taxes in the rent amount, unduly increasing the school's operational costs. The Texas Constitution currently authorizes the legislature by general law to exempt from property taxation all buildings used exclusively and owned by persons or associations of persons for school purposes but does not similarly authorize a property tax exemption for real property that is leased to a school, other than property owned by a church or religious society that is leased to a school, which may be exempt by virtue of its ownership. H.J.R. 86 proposes an amendment to the Texas Constitution to include any real property leased to schools among that the legislature may exempt from property taxation.

RULEMAKING AUTHORITY

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

ANALYSIS

H.J.R. 86 proposes an amendment to the Texas Constitution to include among the property that the legislature, by general law, may exempt from property taxation any real property that is leased to a person for use as a school for educational purposes. The resolution adds a temporary provision, set to expire January 1, 2015, to establish that this authorization for a property tax exemption applicable to such property takes effect beginning with the tax year that begins January 1, 2014.

ELECTION DATE

The constitutional amendment proposed by this joint resolution will be submitted to the voters at an election to be held November 5, 2013.