88R11272 CJC-F
 
  By: Talarico H.B. No. 3621
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an exemption from ad valorem taxation of real property
  used to operate a child-care facility.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.36 to read as follows:
         Sec. 11.36.  CHILD-CARE FACILITIES. (a)  In this section:
               (1)  "Child-care facility" means a facility licensed by
  the Health and Human Services Commission to provide assessment,
  care, training, education, custody, treatment, or supervision for a
  child who is not related by blood, marriage, or adoption to the
  owner or operator of the facility, for all or part of the 24-hour
  day, whether or not the facility is operated for profit or charges
  for the services it offers.
               (2)  "Qualifying child-care facility" means a
  child-care facility that is accredited by a nationally recognized
  accrediting organization for child-care or early childhood
  education facilities or programs approved by the Texas Workforce
  Commission and the Department of Family and Protective Services as
  applying criteria for accreditation adequate to ensure the quality
  of an accredited facility or program, such as the National
  Association for the Education of Young Children or the National
  Early Childhood Program Accreditation Commission.
         (b)  Subject to Subsection (c), a person is entitled to an
  exemption from taxation of:
               (1)  the real property the person owns and operates as a
  qualifying child-care facility; or
               (2)  the portion of the real property that the person
  owns and leases to a person who uses the property to operate a
  qualifying child-care facility.
         (c)  To qualify for the exemption authorized by this section,
  the property must be:
               (1)  except as provided by Subsection (d), used
  exclusively to provide developmental and educational services for
  children attending the child-care facility; and
               (2)  reasonably necessary for the operation of the
  child-care facility. 
         (d)  The use of exempt property for functions other than
  providing developmental and educational services for children
  attending the child-care facility located on the property does not
  result in the loss of an exemption authorized by this section if
  those other functions are incidental to the use of the property for
  providing those services to those children and benefit:
               (1)  those children; or
               (2)  the staff and faculty of the facility.
         (e)  A person who claims an exemption under Subsection (b)(2)
  must include with the application for the exemption an affidavit
  certifying to the chief appraiser for the appraisal district that
  appraises the property that is the subject of the application that:
               (1)  the person has provided to the child-care facility
  to which the property is leased a disclosure document stating the
  amount by which the taxes on the property are reduced as a result of
  the exemption and the method the person will implement to ensure
  that the rent charged for the lease of the property fully reflects
  that reduction; and
               (2)  the rent charged for the lease of the property
  reflects the reduction in the amount of taxes on the property
  resulting from the exemption through a monthly or annual credit
  against the rent.
         (f)  Property is not ineligible for an exemption under this
  section if a portion of the property is used for functions other
  than those described by Subsections (c) and (d). However, the
  exemption does not apply to the value of the portion of the property
  that is used for those other functions.
         (g)  Section 25.07 does not apply to a leasehold interest in
  property for which the owner receives an exemption under this
  section.
         (h)  The comptroller may adopt rules and forms necessary for
  the administration of this section.
         SECTION 2.  Section 11.43(c), Tax Code, is amended to read as
  follows:
         (c)  An exemption provided by Section 11.13, 11.131, 11.132,
  11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
  11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
  11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or
  11.36, once allowed, need not be claimed in subsequent years, and
  except as otherwise provided by Subsection (e), the exemption
  applies to the property until it changes ownership or the person's
  qualification for the exemption changes.  However, except as
  provided by Subsection (r), the chief appraiser may require a
  person allowed one of the exemptions in a prior year to file a new
  application to confirm the person's current qualification for the
  exemption by delivering a written notice that a new application is
  required, accompanied by an appropriate application form, to the
  person previously allowed the exemption.  If the person previously
  allowed the exemption is 65 years of age or older, the chief
  appraiser may not cancel the exemption due to the person's failure
  to file the new application unless the chief appraiser complies
  with the requirements of Subsection (q), if applicable.
         SECTION 3.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 4.  This Act takes effect January 1, 2024, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, authorizing the legislature to exempt from
  ad valorem taxation real property used to operate a child-care
  facility is approved by the voters. If that amendment is not
  approved by the voters, this Act has no effect.