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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 an organization engaged primarily in performing charitable |
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functions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.184, Tax Code, is amended by amending |
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Subsection (k) and adding Subsections (k-1), (k-2), (k-3), and |
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(k-4) to read as follows: |
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(k) An exemption under this section expires when: |
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(1) the organization no longer owns the property |
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described by Subsection (c); or |
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(2) the comptroller determines based on the factors |
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provided by Subsection (e) that the organization no longer |
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qualifies for an exemption [at the end of the fifth tax year after |
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the year in which the exemption is granted. To continue to receive |
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an exemption under this section after that year, the organization |
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must obtain a new determination letter and reapply for the |
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exemption]. |
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(k-1) An organization receiving an exemption under this |
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section shall notify the comptroller and the chief appraiser of the |
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appraisal district established for the county in which the exempt |
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property is located of each of the following material changes not |
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later than the 30th day after the date the material change occurs: |
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(1) the organization sells or otherwise disposes of |
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the property that is subject to the exemption; |
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(2) the Internal Revenue Service determines that the |
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organization is no longer an exempt entity under Section 501(c)(3), |
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Internal Revenue Code of 1986; or |
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(3) the organization no longer qualifies for an |
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exemption under Section 151.310. |
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(k-2) Notwithstanding Subsection (k), an organization that |
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received an exemption granted under this section that expired |
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before September 1, 2023, is entitled to an automatic reinstatement |
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of the expired exemption under this section for each tax year |
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following the tax year in which the exemption expired if the |
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organization: |
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(1) still owns the property that was exempt from |
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taxation under this section; |
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(2) has a valid determination letter issued by the |
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comptroller under Subsection (f); and |
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(3) submits a written request to the chief appraiser |
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of the appraisal district established for the county in which the |
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exempt property is located that includes: |
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(A) proof that the organization was previously |
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granted an exemption under this section for the property that is the |
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subject of the request; and |
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(B) a copy of the determination letter issued by |
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the comptroller under Subsection (f). |
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(k-3) If an organization is entitled to continue to receive |
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an exemption under Subsection (k-2), the exemption remains in |
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effect until it expires as provided by Subsection (k). |
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(k-4) An organization that is entitled to continue to |
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receive an exemption under Subsection (k-2) does not owe any tax on |
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the exempt property for the period starting on the date the |
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exemption expired under Subsection (k) and ending on the date the |
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organization is entitled to continue to receive the exemption under |
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Subsection (k-2). If the organization paid taxes on the property |
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during that period, the collector shall refund to the organization |
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the amount of tax imposed on the property. The collector shall pay |
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the refund not later than the 30th day after the date the chief |
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appraiser notifies the collector of the approval of the continued |
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exemption under Subsection (k-2). |
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SECTION 2. Section 11.43(c), Tax Code, is amended to read as |
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follows: |
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(c) An exemption provided by Section 11.13, 11.131, 11.132, |
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11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.184, |
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11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), |
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11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, or |
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11.35, once allowed, need not be claimed in subsequent years, and |
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except as otherwise provided by Subsection (e), the exemption |
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applies to the property until it changes ownership or the person's |
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qualification for the exemption changes. However, except as |
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provided by Subsection (r), the chief appraiser may require a |
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person allowed one of the exemptions in a prior year to file a new |
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application to confirm the person's current qualification for the |
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exemption by delivering a written notice that a new application is |
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required, accompanied by an appropriate application form, to the |
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person previously allowed the exemption. If the person previously |
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allowed the exemption is 65 years of age or older, the chief |
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appraiser may not cancel the exemption due to the person's failure |
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to file the new application unless the chief appraiser complies |
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with the requirements of Subsection (q), if applicable. |
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SECTION 3. This Act takes effect January 1, 2024. |