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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 of a |
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charitable organization that provides financial support for |
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promoting agriculture, supporting Texas youth and providing |
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educational support. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 11, Tax Code, is amended by |
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adding Section 11.186 to read as follows: |
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Sec. 11.186. ORGANIZATIONS PROMOTING AGRICULTURE, |
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SUPPORTING TEXAS YOUTH, AND PROVIDING EDUCATIONAL SUPPORT. In a |
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county with a population of more than 3.3 million, all real and |
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personal property owned by a nonprofit corporation, as defined by |
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Section 22.001, Business Organizations Code, organized exclusively |
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for charitable, educational and scientific purposes, and held for |
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use in promoting agriculture, supporting Texas youth and providing |
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educational support within the community is exempt from all ad |
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valorem taxation. Use of property exempted by this section for |
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purposes other than those listed herein does not result in loss of |
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the exemption if ensuing and incidental revenues are used in |
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support of the nonprofit's charitable purposes. This section shall |
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not exempt from taxation any interest in real or personal property, |
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including a leasehold or other possessory interest, of a for-profit |
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lessee of property for which a nonprofit corporation is entitled to |
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an exemption from taxation under this section. |
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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, 11.186, |
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11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), |
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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 takes effect January 1, 2026. |