| |
|
|
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. |
|
|
|
|
|
* * * * * |