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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 real property |
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leased to and used by certain schools. |
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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 11.211 to read as follows: |
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Sec. 11.211. REAL PROPERTY LEASED TO CERTAIN SCHOOLS. (a) |
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A person is entitled to an exemption from taxation of the real |
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property that the person owns and leases to an open-enrollment |
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charter school authorized by Subchapter D, Chapter 12, Education |
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Code, that is qualified as provided by Section 11.21(d) of this code |
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if: |
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(1) the real property is used exclusively by the |
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school for educational functions; |
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(2) the real property is reasonably necessary for the |
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operation of the school; |
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(3) the owner certifies by affidavit to the school |
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that the rent for the lease of the real property will be reduced by |
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an amount equal to the amount by which the taxes on the property are |
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reduced as a result of the exemption; |
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(4) the owner provides the school with a disclosure |
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document stating the amount by which the taxes on the real property |
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are reduced as a result of the exemption and the method the owner |
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will implement to ensure that the rent charged for the lease of the |
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property fully reflects that reduction; and |
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(5) the rent charged for the lease of the real property |
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reflects the reduction in the amount of taxes on the property |
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resulting from the exemption through a monthly or annual credit |
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against the rent. |
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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, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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Regular Session, 2017, authorizing the legislature to exempt from |
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ad valorem taxation real property leased to certain schools |
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organized and operated primarily for the purpose of engaging in |
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educational functions is approved by the voters. If that amendment |
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is not approved by the voters, this Act has no effect. |