85R3316 TJB-D

By: Lozano H.J.R. No. 51

A JOINT RESOLUTION

proposing a constitutional amendment authorizing the governing body of a political subdivision to exempt from ad valorem taxation mineral interests owned by nonprofit corporations organized for the exclusive purpose of generating income for certain charitable nonprofit corporations through the ownership, lease, and management of real property.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Article VIII, Texas Constitution, is amended by adding Section 1-r to read as follows:

Sec. 1-r. (a) The governing body of a political subdivision may exempt from ad valorem taxation a mineral interest owned by a nonprofit corporation if:

(1) the nonprofit corporation is organized for the exclusive purpose of generating income for a specific charitable nonprofit corporation through its ownership, lease, and management of real property, including buildings, land, and mineral interests; and

(2) the charitable nonprofit corporation:

(A) is organized exclusively to perform religious and charitable purposes;

(B) is engaged exclusively in providing housing, counseling, training, spiritual aid, and related services to children and families in need;

(C) does not charge a fee for the provision of a service; and

(D) does not accept or receive money from a governmental entity.

(b) The legislature may impose additional eligibility requirements for an exemption authorized by this section.

SECTION 2. The following temporary provision is added to the Texas Constitution:

TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by the 85th Legislature, Regular Session, 2017, authorizing the governing body of a political subdivision to exempt from ad valorem taxation mineral interests owned by nonprofit corporations organized for the exclusive purpose of generating income for certain charitable nonprofit corporations through the ownership, lease, and management of real property.

(b) Section 1-r, Article VIII, of this constitution takes effect January 1, 2018, and applies only to a tax year beginning on or after that date.

(c) This temporary provision expires January 1, 2019.

SECTION 3. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 7, 2017. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the governing body of a political subdivision to exempt from ad valorem taxation mineral interests owned by nonprofit corporations organized for the exclusive purpose of generating income for certain charitable nonprofit corporations through the ownership, lease, and management of real property."