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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 leased to and used by charitable organizations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.186 to read as follows: |
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Sec. 11.186. REAL PROPERTY LEASED TO CHARITABLE |
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ORGANIZATIONS. (a) A person is entitled to an exemption from |
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taxation of the real property that the person owns and leases to an |
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organization that meets the requirements of a charitable |
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organization provided by Sections 11.18(e) and (f) if: |
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(1) the real property is used by the organization |
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primarily for the purpose of performing a function listed in |
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Section 11.18(d); |
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(2) the rental for the real property on an annual basis |
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is not more than five percent of the property's market value; and |
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(3) the real property is reasonably necessary for the |
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operation of the organization. |
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(b) Section 25.07 does not apply to a leasehold interest in |
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property for which the owner receives an exemption under this |
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section. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2014, but only |
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if the constitutional amendment authorizing the legislature to |
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exempt from ad valorem taxation real property that is leased to a |
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charitable organization and that is used by the organization |
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primarily for the purpose of performing a charitable function is |
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approved by the voters. If that amendment is not approved by the |
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voters, this Act has no effect. |