Relating to exempting from ad valorem taxation property used by certain nonprofit community business organizations to provide services to aid in the economic development of local communities.
Impact
If enacted, SB564 is expected to alleviate the financial burden on qualifying nonprofit organizations by exempting them from ad valorem taxes on properties used for charitable purposes. This change could result in increased financial resources available for these organizations to invest back into their communities, thereby promoting local economic growth. The legislation would apply only to property tax years beginning on or after the bill's effective date, indicating a phased approach to implementation.
Notable
The bill includes provisions allowing for the exemption of incomplete improvements for up to three years, encouraging the construction and development of facilities meant to enhance community services. This provision could support additional economic activities and attract new investments, but it may also lead to scrutiny on how effectively these projects are initiated and completed by the qualifying organizations.
Summary
SB564 proposes amendments to the Texas Tax Code to establish a property tax exemption for certain nonprofit community business organizations that contribute to the economic development of local communities. The bill defines eligible nonprofit organizations as those with specific qualifications, including having been in existence for at least five years and maintaining a membership of at least 50 dues-paying members. The exemption applies to tangible properties owned by these organizations, provided they are used exclusively for their primary functions related to community economic development.
Contention
There may be potential points of contention surrounding the bill, particularly regarding the classification of organizations that qualify for the tax exemption. Concerns could arise regarding the definition and criteria for 'nonprofit community business organizations,' as well as how this may affect broader economic policies and tax revenue for local governments. Opponents may argue that such exemptions could create disparities in funding for essential services if significant properties are taken off the tax rolls, impacting overall community budgets.
Relating to an exemption from ad valorem taxation of property owned by a charitable organization that provides services related to the placement of a child in a foster or adoptive home.
Relating to the exemption from ad valorem taxation of property owned by a charitable organization that provides a meeting place and support services for organizations that provide assistance to persons with substance use disorders and their families.
Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.
Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.