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A BILL TO BE ENTITLED
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AN ACT
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relating to the criteria for a local option exemption from ad |
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valorem taxation by a county or municipality of all or part of the |
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appraised value of real property used to operate a child-care |
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facility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.36, Tax Code, is amended by amending |
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subsections (a) and (f) to read as follows: |
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(a) In this section: |
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(1) "Child-care facility" means a facility licensed by |
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the Health and Human Services Commission to provide assessment, |
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care, training, education, custody, treatment, or supervision for a |
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child who is not related by blood, marriage, or adoption to the |
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owner or operator of the facility, for all or part of the 24-hour |
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day, whether or not the facility is operated for profit or charges |
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for the services it offers. |
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(2) "Qualifying child-care facility" means a |
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child-care facility: |
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(A) the owner or operator of which participates |
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in the Texas Workforce Commission's Texas Rising Star Program as |
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described by Section 2308.3155, Government Code, for that facility; |
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and |
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(B) at which at least 20 percent of the total |
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number of children enrolled at the facility receive subsidized |
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child-care services provided through the child-care services |
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program administered by the Texas Workforce Commission. |
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(3) "Net lease" means a lease in which the lessee pays |
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rent plus the ad valorem taxes for the property. The term "net |
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lease" includes a triple net or net-net-net lease. |
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(f) A person who claims an exemption under Subsection (b)(2) |
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must include with the application for the exemption an affidavit |
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certifying to the chief appraiser for the appraisal district that |
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appraises the property that is the subject of the application that: |
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(1) the person has provided to the child-care facility |
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to which the property is leased a disclosure document stating the |
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amount by which the taxes on the property are reduced as a result of |
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the exemption and the method the person will implement to ensure |
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that the rent charged for the lease of the property fully reflects |
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that reduction, including by certifying that the property is |
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subject to a net lease under which the lessee is directly |
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responsible for the payment of ad valorem taxes imposed on the |
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property; |
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(2) either: |
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(A) the property is subject to a net lease under |
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which the lessee is directly responsible for the payment of ad |
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valorem taxes imposed on the property; or |
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(B) the rent charged for the lease of the |
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property reflects the reduction in the amount of taxes on the |
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property resulting from the exemption through a monthly or annual |
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credit against the rent; and |
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(3) the person does not charge rent for the lease of |
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the property in an amount that exceeds: |
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(A) for property that consists of space in a |
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commercial property, the rent charged by the person to other |
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tenants of the commercial property for similar space; or |
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(B) for property other than property described by |
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Paragraph (A), the average rent charged for comparable rental |
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property. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |