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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 certain nonprofit corporations and used to promote |
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agriculture, support youth, and provide educational support in the |
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community. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.23, Tax Code, is amended by adding |
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Subsection (n) to read as follows: |
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(n) Promotion of Agriculture, Support of Youth, and |
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Provision of Educational Support in Populous Counties. In a county |
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with a population of 3.3 million or more, all real and personal |
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property owned by a nonprofit corporation, as that term is defined |
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by Section 22.001, Business Organizations Code, organized |
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exclusively for charitable, educational, and scientific purposes, |
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and held for use in promoting agriculture, supporting youth, and |
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providing educational support in the community is exempt from all |
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ad valorem taxation. Use of property exempted by this subsection |
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for purposes other than promoting agriculture, supporting youth, |
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and providing educational support in the community does not result |
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in the loss of the exemption if the revenue derived from that |
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incidental use benefits the beneficiaries of the charitable |
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organization that owns the property. This subsection does not |
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exempt from ad valorem taxation any interest in real or personal |
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property, including a leasehold or other possessory interest, of a |
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for-profit lessee of property for which a nonprofit corporation is |
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entitled to an exemption from taxation under this subsection. |
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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, 11.19, |
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11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), [or] (m), or (n), |
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11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, |
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or 11.36, 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 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 4. It is the intent of the 89th Legislature, Regular |
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Session, 2025, that the amendments made by this Act be harmonized |
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with another Act of the 89th Legislature, Regular Session, 2025, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 5. This Act takes effect January 1, 2026. |