Texas House Bill HB3248

Texas 2009 - 81st Regular

Caption

Relating to the exemption from ad valorem taxation of real property leased to and used by certain schools.

Impact

If enacted, HB 3248 would amend the Tax Code by adding Section 11.211, directly impacting property taxes collected by local governments from property owners leasing to qualifying schools. This tax exemption could lead to increased resources for schools while reducing revenue from real property taxes. The bill includes stipulations that the property must be necessary for the operation of the school, which aims to safeguard against misuse of the exemption by ensuring that the leased property serves a significant educational purpose.

Summary

House Bill 3248 proposes an exemption from ad valorem taxation for real property that is leased to certain schools that meet specific criteria. The bill aims to alleviate the tax burden on property owners who lease their land to educational institutions, thereby potentially encouraging more property owners to engage in lease agreements with schools. The legislation specifies that the property must be used exclusively for educational functions and leased for no more than one percent of its market value, ensuring that the primary purpose of the property remains educational rather than commercial.

Contention

Notable points of contention around HB 3248 could arise regarding its implications for local tax revenue and the criteria set forth for eligibility. Detractors may argue that broad tax exemptions could strain public funds, particularly in areas already facing budgetary constraints. Furthermore, the potential for misuse of the exemption could lead to calls for stricter guidelines or oversight, prompting debate among legislators and educational advocates concerning the bill's long-term impacts on the state's educational landscape and public financing.