Texas 2009 - 81st Regular

Texas Senate Bill SB564 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R4479 UM-D
2	2	By: Jackson, Mike S.B. No. 564
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to exempting from ad valorem taxation property used by
8	8	certain nonprofit community business organizations to provide
9	9	services to aid in the economic development of local communities.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
12	12	adding Section 11.231 to read as follows:
13	13	Sec. 11.231. NONPROFIT COMMUNITY BUSINESS ORGANIZATION
14	14	PROVIDING ECONOMIC DEVELOPMENT SERVICES TO LOCAL COMMUNITY. (a)
15	15	In this section, "nonprofit community business organization" means
16	16	an organization that meets the following requirements:
17	17	(1) the organization has been in existence for at
18	18	least the preceding five years;
19	19	(2) the organization:
20	20	(A) is a nonprofit corporation organized under
21	21	the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
22	22	Vernon's Texas Civil Statutes) or a nonprofit corporation formed
23	23	under the Texas Nonprofit Corporation Law, as described by Section
24	24	1.008, Business Organizations Code;
25	25	(B) is a nonprofit organization described by
26	26	Section 501(c)(6), Internal Revenue Code of 1986; and
27	27	(C) is not a statewide organization;
28	28	(3) for at least the preceding three years, the
29	29	organization has maintained a dues-paying membership of at least 50
30	30	members; and
31	31	(4) the organization:
32	32	(A) has a board of directors elected by the
33	33	members;
34	34	(B) does not compensate members of the board of
35	35	directors for service on the board;
36	36	(C) with respect to its activities in this state,
37	37	is engaged primarily in performing functions listed in Subsection
38	38	(d);
39	39	(D) is primarily supported by membership dues and
40	40	other income from activities substantially related to its primary
41	41	functions; and
42	42	(E) is not, has not formed, and does not
43	43	financially support a political committee as defined by Section
44	44	251.001, Election Code.
45	45	(b) An association that qualifies as a nonprofit community
46	46	business organization as provided by this section is entitled to an
47	47	exemption from taxation of:
48	48	(1) the buildings and tangible personal property that:
49	49	(A) are owned by the nonprofit community business
50	50	organization; and
51	51	(B) except as permitted by Subsection (c), are
52	52	used exclusively by qualified nonprofit community business
53	53	organizations to perform their primary functions; and
54	54	(2) the real property owned by the nonprofit community
55	55	business organization consisting of:
56	56	(A) an incomplete improvement that:
57	57	(i) is under active construction or other
58	58	physical preparation; and
59	59	(ii) is designed and intended to be used
60	60	exclusively by qualified nonprofit community business
61	61	organizations; and
62	62	(B) the land on which the incomplete improvement
63	63	is located that will be reasonably necessary for the use of the
64	64	improvement by qualified nonprofit community business
65	65	organizations.
66	66	(c) Use of exempt property by persons who are not nonprofit
67	67	community business organizations qualified as provided by this
68	68	section does not result in the loss of an exemption authorized by
69	69	this section if the use is incidental to use by qualified nonprofit
70	70	community business organizations and limited to activities that
71	71	benefit the beneficiaries of the nonprofit community business
72	72	organizations that own or use the property.
73	73	(d) To qualify for an exemption under this section, a
74	74	nonprofit community business organization must be engaged
75	75	primarily in performing one or more of the following functions in
76	76	the local community:
77	77	(1) promoting the common economic interests of
78	78	commercial enterprises;
79	79	(2) improving the business conditions of one or more
80	80	types of business; or
81	81	(3) otherwise providing services to aid in economic
82	82	development.
83	83	(e) In this section, "building" includes the land that is
84	84	reasonably necessary for use of, access to, and ornamentation of
85	85	the building.
86	86	(f) A property may not be exempted under Subsection (b)(2)
87	87	for more than three years.
88	88	(g) For purposes of Subsection (b)(2), an incomplete
89	89	improvement is under physical preparation if the nonprofit
90	90	community business organization has:
91	91	(1) engaged in architectural or engineering work, soil
92	92	testing, land clearing activities, or site improvement work
93	93	necessary for the construction of the improvement; or
94	94	(2) conducted an environmental or land use study
95	95	relating to the construction of the improvement.
96	96	SECTION 2. Section 11.42(d), Tax Code, is amended to read as
97	97	follows:
98	98	(d) A person who acquires property after January 1 of a tax
99	99	year may receive an exemption authorized by Section 11.17, 11.18,
100	100	11.19, 11.20, 11.21, 11.23, 11.231, or 11.30 for the applicable
101	101	portion of that tax year immediately on qualification for the
102	102	exemption.
103	103	SECTION 3. Section 11.43(c), Tax Code, is amended to read as
104	104	follows:
105	105	(c) An exemption provided by Section 11.13, 11.17, 11.18,
106	106	11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), (j), or
107	107	(j-1), 11.231, 11.29, 11.30, or 11.31, once allowed, need not be
108	108	claimed in subsequent years, and except as otherwise provided by
109	109	Subsection (e), the exemption applies to the property until it
110	110	changes ownership or the person's qualification for the exemption
111	111	changes. However, the chief appraiser may require a person allowed
112	112	one of the exemptions in a prior year to file a new application to
113	113	confirm the person's current qualification for the exemption by
114	114	delivering a written notice that a new application is required,
115	115	accompanied by an appropriate application form, to the person
116	116	previously allowed the exemption.
117	117	SECTION 4. This Act applies only to an ad valorem tax year
118	118	that begins on or after the effective date of this Act.
119	119	SECTION 5. This Act takes effect January 1, 2010.