Texas House Bill HB132

Texas 2009 - 81st Regular

• Filed: 11/10/08

Caption

Relating to the exemption from ad valorem taxation of property owned by organizations engaged primarily in performing charitable functions.

Impact

The implications of HB132 on state laws are significant. By broadening the tax exemption criteria for charitable organizations, the bill facilitates increased financial resources for these entities. This can enhance their operational capacity and ability to serve community needs without bearing the financial burden of property taxes. Furthermore, the bill's provisions could encourage the establishment of more charitable organizations and initiatives, ultimately benefiting the state's social fabric and community support systems.

Summary

House Bill 132 proposes a modification to the Texas Tax Code concerning the exemption from ad valorem taxation for properties owned by charitable organizations. This bill aims to expand the scope of tax exemptions available to entities primarily engaged in charitable activities, allowing them to benefit from significant tax relief which can be instrumental in supporting their operations. The bill specifically amends Section 11.184 of the Tax Code to ensure that not only the completed properties but also those under construction intended for charitable use can qualify for tax exemptions.

Contention

While HB132 garners support from various charitable organizations that stand to benefit from these tax reforms, there are potential points of contention regarding its implementation. Some legislators may raise concerns about the fiscal impact on local governments that rely on property taxes as a primary revenue source. There may be discussions about possible limitations or accountability measures for the organizations benefiting from these exemptions to ensure that the tax relief translates into tangible community benefits.