Texas Senate Bill SB1854

Texas 2015 - 84th Regular

Caption

Relating to the exemption from ad valorem taxation of property owned by the National Hispanic Institute.

Impact

The implications of SB1854 are significant for similar nonprofit organizations in Texas. By establishing a statutory exemption for NHI, it sets a precedent for other organizations seeking similar treatment under state tax laws. The bill aims to streamline the process of obtaining the property tax exemption, as it stipulates that once granted, the exemption need not be claimed in subsequent years unless there is a change in ownership of the property or the qualification status of the organization. This could enhance operational stability for nonprofits that rely on such exemptions to fund their activities.

Summary

SB1854 proposes an amendment to the Tax Code of Texas concerning the exemption from ad valorem taxation for the property owned by the National Hispanic Institute (NHI). This organization, operating as a 501(c)(3) nonprofit, would benefit from an exemption on its real and tangible personal property, provided it maintains its federal income tax exemption status. This bill is meant to support the NHI in its mission by alleviating financial burdens associated with property taxes, thereby promoting its charitable objectives.

Contention

While the bill primarily seeks to support the NHI, there may be discussions around equity in tax treatment for various nonprofit entities. Critics may raise concerns that this special exemption could divert tax revenue that could otherwise benefit the community at large, potentially questioning the fairness of providing tax relief to one organization over another. Proponents, however, argue that supporting the NHI aligns with broader community interests by promoting education and cultural awareness among Hispanic youth.