Texas House Bill HB4592

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, HB4592 would potentially relieve financial burdens on private property owners who lease their real estate to educational institutions, such as charter schools. This could facilitate a greater number of educational facilities operating within the state, as property owners might be encouraged to lease educational properties under these beneficial terms. Furthermore, by ensuring that the charter schools receive the full benefit of the tax exemption, the bill aims to directly support education funding and operations.

Summary

House Bill 4592 proposes an amendment to the Tax Code, specifically addressing the exemption from ad valorem taxation on real property that is leased to and used by certain schools. The bill stipulates that property owners who lease real estate to qualifying schools may receive a tax exemption, provided the property is utilized exclusively for educational functions and is essential for the school's operation. The bill also requires property owners to certify and disclose the benefits derived from the exemption to ensure that the schools receive the intended financial relief.

Contention

The support for the bill may arise from its potential to enhance educational access through financial incentives for property owners. However, some opponents could express concerns over the implications of property tax exemptions on local government revenue. Critics might argue that such exemptions could lead to reduced funding for other public services, as property taxes often contribute significantly to local budgets. This raises important discussions on the balance between supporting educational institutions and maintaining adequate funding for community services.