84R267 TJB-D
 
  By: Canales H.B. No. 3420
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation for property
  used by certain nonprofit community business organizations to
  provide services to aid in the economic development of local
  communities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.231(a), Tax Code, is amended to read
  as follows:
         (a)  In this section, "nonprofit community business
  organization" means an organization that meets the following
  requirements:
               (1)  the organization has been in existence for at
  least the preceding five years;
               (2)  the organization:
                     (A)  is a nonprofit corporation governed by
  [organized under the Texas Non-Profit Corporation Act (Article
  1396-1.01 et seq., Vernon's Texas Civil Statutes) or a nonprofit
  corporation formed under] the Texas Nonprofit Corporation Law, as
  described by Section 1.008, Business Organizations Code;
                     (B)  is a nonprofit organization described by
  Section 501(c)(6), Internal Revenue Code of 1986; and
                     (C)  is not a statewide organization; and
               (3)  [for at least the preceding three years, the
  organization has maintained a dues-paying membership of at least 50
  members; and
               [(4)]  the organization:
                     (A)  [has a board of directors elected by the
  members;
                     [(B)]  does not compensate members of the board of
  directors for service on the board;
                     (B) [(C)]  with respect to its activities in this
  state, is engaged primarily in performing functions listed in
  Subsection (d);
                     (C) [(D)]  is primarily supported by membership
  dues and other income from activities substantially related to its
  primary functions; and
                     (D) [(E)]  is not, has not formed, and does not
  financially support a political committee as defined by Section
  251.001, Election Code.
         SECTION 2.  This Act applies only to ad valorem taxes imposed
  for a tax year that begins on or after the effective date of this
  Act.
         SECTION 3.  This Act takes effect January 1, 2016.