88R15782 DRS-F
 
  By: Parker S.B. No. 2361
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation of property
  owned by an organization engaged primarily in performing charitable
  functions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.184, Tax Code, is amended by amending
  Subsection (k) and adding Subsections (k-1), (k-2), (k-3), and
  (k-4) to read as follows:
         (k)  An exemption under this section expires when:
               (1)  the organization no longer owns the property
  described by Subsection (c); or
               (2)  the comptroller determines based on the factors
  provided by Subsection (e) that the organization no longer
  qualifies for an exemption [at the end of the fifth tax year after
  the year in which the exemption is granted.  To continue to receive
  an exemption under this section after that year, the organization
  must obtain a new determination letter and reapply for the
  exemption].
         (k-1)  An organization receiving an exemption under this
  section shall notify the comptroller and the chief appraiser of the
  appraisal district established for the county in which the exempt
  property is located of each of the following material changes not
  later than the 30th day after the date the material change occurs:
               (1)  the organization sells or otherwise disposes of
  the property that is subject to the exemption;
               (2)  the Internal Revenue Service determines that the
  organization is no longer an exempt entity under Section 501(c)(3),
  Internal Revenue Code of 1986; or
               (3)  the organization no longer qualifies for an
  exemption under Section 151.310.
         (k-2)  Notwithstanding Subsection (k), an organization that
  received an exemption granted under this section that expired
  before September 1, 2023, is entitled to an automatic reinstatement
  of the expired exemption under this section for each tax year
  following the tax year in which the exemption expired if the
  organization:
               (1)  still owns the property that was exempt from
  taxation under this section;
               (2)  has a valid determination letter issued by the
  comptroller under Subsection (f); and
               (3)  submits a written request to the chief appraiser
  of the appraisal district established for the county in which the
  exempt property is located that includes:
                     (A)  proof that the organization was previously
  granted an exemption under this section for the property that is the
  subject of the request; and
                     (B)  a copy of the determination letter issued by
  the comptroller under Subsection (f).
         (k-3)  If an organization is entitled to continue to receive
  an exemption under Subsection (k-2), the exemption remains in
  effect until it expires as provided by Subsection (k).
         (k-4)  An organization that is entitled to continue to
  receive an exemption under Subsection (k-2) does not owe any tax on
  the exempt property for the period starting on the date the
  exemption expired under Subsection (k) and ending on the date the
  organization is entitled to continue to receive the exemption under
  Subsection (k-2). If the organization paid taxes on the property
  during that period, the collector shall refund to the organization
  the amount of tax imposed on the property. The collector shall pay
  the refund not later than the 30th day after the date the chief
  appraiser notifies the collector of the approval of the continued
  exemption under Subsection (k-2).
         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, 11.184,
  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, 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 takes effect January 1, 2024.