83R6226 CJC-D
By: Gooden H.B. No. 1459
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of certain real
property leased to and used by charitable organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.186 to read as follows:
Sec. 11.186. REAL PROPERTY LEASED TO CHARITABLE
ORGANIZATIONS. (a) A person is entitled to an exemption from
taxation of the real property that the person owns and leases to an
organization that meets the requirements of a charitable
organization provided by Sections 11.18(e) and (f) if:
(1) the real property is used by the organization
primarily for the purpose of performing a function listed in
Section 11.18(d);
(2) the rental for the real property on an annual basis
is not more than five percent of the property's market value; and
(3) the real property is reasonably necessary for the
operation of the organization.
(b) Section 25.07 does not apply to a leasehold interest in
property for which the owner receives an exemption under this
section.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2014, but only
if the constitutional amendment authorizing the legislature to
exempt from ad valorem taxation real property that is leased to a
charitable organization and that is used by the organization
primarily for the purpose of performing a charitable function is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.