84R8818 TJB-D
By: Bell H.B. No. 3280
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation for property
owned by a charitable organization for the purpose of donation to a
partially disabled veteran for use as the veteran's residence
homestead and for property donated to such a veteran by, or
purchased by such a veteran with a donation from, such an
organization for that purpose.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 11.132, Tax Code, as added
by Chapter 122 (H.B. 97), Acts of the 83rd Legislature, Regular
Session, 2013, is amended to read as follows:
Sec. 11.132. [DONATED] RESIDENCE HOMESTEAD OF PARTIALLY
DISABLED VETERAN DONATED BY OR PURCHASED WITH DONATION FROM
CHARITABLE ORGANIZATION.
SECTION 2. Section 11.132, Tax Code, as added by Chapter 122
(H.B. 97), Acts of the 83rd Legislature, Regular Session, 2013, is
amended by amending Subsections (b) and (c) and adding Subsections
(b-1) and (e) to read as follows:
(b) A disabled veteran who has a disability rating of less
than 100 percent is entitled to an exemption from taxation of a
percentage of the appraised value of the disabled veteran's
residence homestead equal to the disabled veteran's disability
rating if the residence homestead was donated to the disabled
veteran by a charitable organization:
(1) at no cost to the disabled veteran; or
(2) at some cost to the disabled veteran in the form of
a cash payment, a mortgage, or both in an aggregate amount that is
not more than 50 percent of the good faith estimate of the market
value of the residence homestead made by the charitable
organization as of the date the donation is made.
(b-1) A disabled veteran who has a disability rating of less
than 100 percent is entitled to an exemption from taxation of a
portion of the appraised value of the disabled veteran's residence
homestead equal to the dollar amount of a donation made to the
disabled veteran by a charitable organization for the purpose of
purchasing the residence homestead if the donation is used by the
disabled veteran for that purpose.
(c) The surviving spouse of a disabled veteran who qualified
for an exemption under Subsection (b) or (b-1) of a percentage or a
portion of the appraised value of the disabled veteran's residence
homestead when the disabled veteran died is entitled to an
exemption from taxation of the same percentage or portion of the
appraised value of the same property to which the disabled
veteran's exemption applied if:
(1) the surviving spouse has not remarried since the
death of the disabled veteran; and
(2) the property:
(A) was the residence homestead of the surviving
spouse when the disabled veteran died; and
(B) remains the residence homestead of the
surviving spouse.
(e) An eligible disabled veteran may not receive an
exemption of both a percentage and a portion of the appraised value
of the residence homestead under Subsections (b) and (b-1), but may
choose either.
SECTION 3. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.1815 to read as follows:
Sec. 11.1815. CHARITABLE ORGANIZATIONS BUILDING RESIDENCE
HOMESTEADS FOR DISABLED VETERANS. (a) A charitable organization is
entitled to an exemption from taxation of real property it owns if
the organization:
(1) is exempt from federal income taxation under
Section 501(a), Internal Revenue Code of 1986, as an organization
described by Section 501(c)(3) of that code; and
(2) owns the property for the purpose of building a
single-family residence on the property to donate to a disabled
veteran at no cost to the disabled veteran as provided by Section
11.132(b)(1), or at some cost to the disabled veteran as provided by
Section 11.132(b)(2).
(b) Property may not be exempted under Subsection (a) after
the third anniversary of the date the charitable organization
acquires the property.
(c) For the purposes of Subsection (d), the chief appraiser
shall determine the market value of property exempted under this
section and shall record the market value in the appraisal records.
(d) If the charitable organization sells property exempted
under this section to a person other than a disabled veteran through
a donation described by Subsection (a)(2), a penalty is imposed on
the property equal to the amount of the taxes that would have been
imposed on the property in each tax year that the property was
exempted from taxation under this section, plus interest at an
annual rate of seven percent calculated from the dates on which the
taxes would have become due.
(e) The charitable organization and the purchaser of the
property are jointly and severally liable for the penalty and
interest imposed under Subsection (d). A tax lien in favor of all
taxing units for which the penalty is imposed attaches to the
property to secure payment of the penalty and interest.
(f) The chief appraiser shall make an entry in the appraisal
records for the property against which a penalty under Subsection
(d) is imposed and shall deliver written notice of the imposition of
the penalty and interest to the charitable organization and to the
person who purchased the property from that organization.
SECTION 4. The heading to Section 11.436, Tax Code, is
amended to read as follows:
Sec. 11.436. APPLICATION FOR EXEMPTION OF CERTAIN PROPERTY
USED FOR LOW-INCOME HOUSING OR TO BUILD RESIDENCE HOMESTEADS FOR
DISABLED VETERANS.
SECTION 5. Section 11.436(a), Tax Code, is amended to read
as follows:
(a) An organization that acquires property that qualifies
for an exemption under Section 11.181(a), 11.1815(a), or 11.1825
may apply for the exemption for the year of acquisition not later
than the 30th day after the date the organization acquires the
property, and the deadline provided by Section 11.43(d) does not
apply to the application for that year.
SECTION 6. Section 26.111(a), Tax Code, is amended to read
as follows:
(a) If an organization acquires taxable property that
qualifies for and is granted an exemption under Section 11.181(a),
11.1815(a), or 11.182(a) for the year in which the property was
acquired, the amount of tax due on the property for that year is
calculated by multiplying the amount of taxes imposed on the
property for the entire year as provided by Section 26.09 by a
fraction, the denominator of which is 365 and the numerator of which
is the number of days in that year before the date the charitable
organization acquired the property.
SECTION 7. The heading to Section 26.1127, Tax Code, is
amended to read as follows:
Sec. 26.1127. CALCULATION OF TAXES ON [DONATED] RESIDENCE
HOMESTEAD OF DISABLED VETERAN OR SURVIVING SPOUSE OF DISABLED
VETERAN DONATED BY OR PURCHASED WITH DONATION FROM CHARITABLE
ORGANIZATION.
SECTION 8. This Act applies only to ad valorem taxes imposed
for an ad valorem tax year that begins on or after the effective
date of this Act.
SECTION 9. This Act takes effect January 1, 2016, but only
if the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, authorizing the legislature to provide for
an exemption from ad valorem taxation of part of the market value of
the residence homestead of a partially disabled veteran or the
surviving spouse of a partially disabled veteran if the residence
homestead was donated to the partially disabled veteran by a
charitable organization for less than the market value of the
residence homestead or if the charitable organization donated all
or part of the purchase price of the residence homestead to the
partially disabled veteran and harmonizing certain related
provisions of the Texas Constitution is approved by the voters. If
that amendment is not approved by the voters, this Act has no
effect.