Texas Senate Bill SB2442

Texas 2009 - 81st Regular

• Out of Senate Committee: 5/4/09
• Voted on by Senate: 5/13/09
• Out of House Committee: 5/19/09
• Voted on by House: 5/26/09
• Governor Action: 6/19/09
• Enrolled: 6/1/09
• Passed: 6/19/09

Caption

Relating to the exemption from ad valorem taxation of property owned by certain charitable organizations.

Impact

Should SB2442 be enacted, it would significantly impact the financial operations of many charitable organizations by easing their tax burdens, thereby providing them with additional resources to allocate towards community service initiatives. This could enhance the capability of nonprofits to deliver essential services, particularly to vulnerable populations such as the elderly or individuals impacted by disasters. Tax exemptions could thus promote the sustainability and growth of such organizations within Texas communities.

Summary

SB2442 is a legislative proposal aimed at amending policies regarding ad valorem taxation exemptions for properties owned by certain charitable organizations. The bill seeks to provide clarity and a broader scope of exemption under the Texas Tax Code, specifically allowing charitable organizations engaged in specific services to benefit from tax relief. This legislation highlights property used for various charitable functions such as providing medical care, supporting the elderly, and serving victims of natural disasters.

Contention

The bill has been discussed in the context of balancing the fiscal responsibilities of the state with the need to foster a robust nonprofit sector. Proponents argue that by alleviating the tax burden on charitable organizations, the state can enhance public welfare by enabling these organizations to provide more substantial services, while clear criteria for exemption may prevent abuse of the tax relief system. However, opponents may raise concerns over potential reductions in tax revenue, which could affect funding for public services, creating an ongoing debate about the appropriate level of support for nonprofit organizations versus the needs of state budget.