83R6226 CJC-D
 
  By: Gooden H.B. No. 1459
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation of certain real
  property leased to and used by charitable organizations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.186 to read as follows:
         Sec. 11.186.  REAL PROPERTY LEASED TO CHARITABLE
  ORGANIZATIONS. (a)  A person is entitled to an exemption from
  taxation of the real property that the person owns and leases to an
  organization that meets the requirements of a charitable
  organization provided by Sections 11.18(e) and (f) if:
               (1)  the real property is used by the organization
  primarily for the purpose of performing a function listed in
  Section 11.18(d);
               (2)  the rental for the real property on an annual basis
  is not more than five percent of the property's market value; and
               (3)  the real property is reasonably necessary for the
  operation of the organization.
         (b)  Section 25.07 does not apply to a leasehold interest in
  property for which the owner receives an exemption under this
  section.
         SECTION 2.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2014, but only
  if the constitutional amendment authorizing the legislature to
  exempt from ad valorem taxation real property that is leased to a
  charitable organization and that is used by the organization
  primarily for the purpose of performing a charitable function is
  approved by the voters. If that amendment is not approved by the
  voters, this Act has no effect.