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A BILL TO BE ENTITLED
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AN ACT
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relating to the property tax exemption for certain nonprofit |
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community business organizations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 11.231, Tax Code, is |
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amended to read as follows: |
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(a) In this section, "nonprofit community business |
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organization" means an organization that meets the following |
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requirements: |
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(1) the organization has been in existence for at |
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least the preceding five years; |
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(2) the organization: |
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(A) is a nonprofit corporation organized under |
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the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., |
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Vernon's Texas Civil Statutes) or a nonprofit corporation formed |
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under the Texas Nonprofit Corporation Law, as described by Section |
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1.008, Business Organizations Code; |
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(B) is a nonprofit organization described by |
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Section 501(c)(6), Internal Revenue Code of 1986; and |
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(C) is not a statewide organization; |
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(3) for at least the preceding three years, the |
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organization has maintained a dues-paying membership of at least 50 |
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members; and |
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(4) the organization: |
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(A) has a board of directors elected by the |
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members; |
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(B) does not compensate members of the board of |
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directors for service on the board; |
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(C) with respect to its activities in this state, |
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is engaged primarily in performing functions listed in Subsection |
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(d); |
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(D) is primarily supported by membership dues and |
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other income from activities substantially related to its primary |
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functions; and |
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(E) is not,and has not formed[, and does not |
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financially support] a political committee as defined by Section |
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251.001, Election Code. |
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SECTION 2. This Act applies only to an ad valorem tax year |
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that begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2026. |