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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 property |
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owned by certain medical centers in certain counties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.23(j-1), Tax Code, is amended to read |
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as follows: |
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(j-1) Medical Center Development in Populous Counties. In a |
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county with a population of 3.3 million or more [described by
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Section 201.1055(1), Transportation Code], all real and personal |
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property owned by a nonprofit corporation, as that term is defined |
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by Section 22.001, Business Organizations Code, organized |
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exclusively for benevolent, charitable, and educational purposes |
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[in the Texas Non-Profit Corporation Act (Article 1396-1.01 et
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seq., Vernon's Texas Civil Statutes)], and held for use in the |
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development or operation of a medical center area or areas in which |
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the nonprofit corporation has donated land for a state medical, |
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dental, or nursing school, [and] for other hospital, medical, |
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educational, research, or nonprofit uses and uses reasonably |
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related to those uses [thereto], for auxiliary uses to support |
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those benevolent, charitable, and educational functions, including |
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the invention, development, and dissemination of materials, tools, |
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technologies, processes, and similar means for translating and |
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applying medical and scientific research for practical |
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applications to advance public health, or for governmental or |
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public purposes, including the relief of traffic congestion, [and
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not leased or otherwise used with a view to profit,] is exempt from |
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all ad valorem taxation [as though the property were, during that
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time, owned and held by the state for health and educational
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purposes]. In connection with the application or enforcement of a |
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deed restriction or a covenant related to the property, a use or |
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purpose described in this subsection shall also be considered to be |
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a hospital, medical, or educational use, or a use that is reasonably |
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related to a hospital, medical, or educational use. |
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SECTION 2. Section 11.23(j-1), Tax Code, as amended by this |
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Act, does not exempt from ad valorem taxation any interest in real |
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or personal property, including a leasehold or other possessory |
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interest, of a for-profit lessee of property for which a nonprofit |
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corporation is entitled to an exemption from ad valorem taxation |
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under that subsection. |
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SECTION 3. 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 4. This Act takes effect January 1, 2018. |
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