Texas House Bill HJR23

Texas 2015 - 84th Regular

Caption

Proposing a constitutional amendment authorizing the governing body of a political subdivision to exempt from ad valorem taxation mineral interests owned by nonprofit corporations organized for the exclusive purpose of generating income for certain charitable nonprofit corporations through the ownership, lease, and management of real property.

Impact

If passed, HJR23 would significantly alter the construct of ad valorem taxation in Texas concerning nonprofit corporations. It would empower local governments to grant exemptions that can directly benefit charity-focused organizations, incentivizing these entities to manage and invest in real estate. Furthermore, this statute introduces the potential for enhanced resources for nonprofits dedicated to religious and charitable purposes, providing them with more financial flexibility in their operations.

Summary

HJR23 proposes a constitutional amendment that allows the governing body of a political subdivision to exempt specific mineral interests owned by nonprofit corporations from ad valorem taxation. This amendment is particularly aimed at nonprofit organizations that are formed exclusively for generating income to benefit charitable nonprofit corporations through the operation and management of real property. By enabling these exemptions, the bill intends to support the financial sustainability of charitable organizations engaged in services for children and families in need without charging fees.

Contention

While the bill may have widespread support among charitable organizations, there might be concerns regarding the criteria and oversight of the exemptions. Legislators could introduce additional eligibility requirements to protect against misuse of exemptions. Debates may arise regarding the implications of increased exemptions on local tax revenues and the balance between fostering nonprofit growth and maintaining adequate funding for public services typically supported by such taxes. There may also be arguments regarding which types of organizations qualify and how this impacts the overall integrity of the tax system.