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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 for property |
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used by certain nonprofit community business organizations to |
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provide services to aid in the economic development of local |
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communities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.231(a), Tax Code, is amended to read |
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as follows: |
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(a) In this section, "nonprofit community business |
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organization" means an organization that meets the following |
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requirements: |
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(1) the organization has been in existence for at |
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least the preceding five years; |
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(2) the organization: |
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(A) is a nonprofit corporation governed by |
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[organized under the Texas Non-Profit Corporation Act (Article
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1396-1.01 et seq., Vernon's Texas Civil Statutes) or a nonprofit
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corporation formed under] the Texas Nonprofit Corporation Law, as |
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described by Section 1.008, Business Organizations Code; |
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(B) is a nonprofit organization described by |
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Section 501(c)(6), Internal Revenue Code of 1986; and |
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(C) is not a statewide organization; and |
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(3) [for at least the preceding three years, the
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organization has maintained a dues-paying membership of at least 50
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members; and
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[(4)] the organization: |
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(A) [has a board of directors elected by the
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members;
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[(B)] does not compensate members of the board of |
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directors for service on the board; |
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(B) [(C)] with respect to its activities in this |
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state, is engaged primarily in performing functions listed in |
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Subsection (d); |
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(C) [(D)] is primarily supported by membership |
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dues and other income from activities substantially related to its |
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primary functions; and |
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(D) [(E)] is not, has not formed, and does not |
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financially support a political committee as defined by Section |
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251.001, Election Code. |
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SECTION 2. This Act 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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Act. |
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SECTION 3. This Act takes effect January 1, 2016. |