83R7461 CJC-D
By: Ellis S.B. No. 1131
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of real property
leased to and used by certain schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.211 to read as follows:
Sec. 11.211. REAL PROPERTY LEASED TO CERTAIN SCHOOLS. (a)
A person is entitled to an exemption from taxation of the real
property that the person owns and leases to a school that is
qualified as provided by Section 11.21(d) if:
(1) the real property is used exclusively by the
school for educational functions;
(2) the rental for the real property on an annual basis
is not more than one percent of the property's market value;
(3) the school owns a building or facility on the
leased property in which the school operates; and
(4) the real property is reasonably necessary for the
operation of the school.
(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 leased to certain
schools organized and operated primarily for the purpose of
engaging in educational functions is approved by the voters. If
that amendment is not approved by the voters, this Act has no
effect.