Texas House Bill HB2133

Texas 2017 - 85th Regular

Caption

Relating to the exemption from ad valorem taxation for property owned by a religious organization for purposes of expanding a religious facility or constructing a new religious facility.

Impact

The enactment of HB 2133 is expected to alter existing state tax laws by widening the scope of available tax exemptions for religious institutions. This bill aims to facilitate the growth and enhancement of religious facilities, which may also positively impact their ability to serve their communities. The prescribed changes will likely lead to increased investments in real estate development by religious organizations, which may contribute to local economic activities associated with construction and facility operations.

Summary

House Bill 2133 addresses the exemption from ad valorem taxation for properties owned by religious organizations when these properties are intended for the expansion or construction of new religious facilities. The bill seeks to amend Section 11.20(j) of the Tax Code to clarify the parameters surrounding property tax exemptions applicable to non-contiguous land associated with a religious organization. Specifically, the legislation aims to allow for a three-year exemption on such properties that are not directly adjacent to the primary site of worship, thus expanding the financial benefits available to religious entities engaged in developmental projects.

Sentiment

The sentiment surrounding HB 2133 appears to be supportive among religious organizations and their advocates, who see the bill as a necessary measure to allow for the expansion of religious services without the burden of significant tax liabilities. However, potential dissent may arise from critics who view tax exemptions for private religious entities as undermining equitable tax contributions from all property owners. The debate is grounded in differing views on the separation of church and state, particularly concerning financial implications for local governments.

Contention

Notable points of contention in discussions surrounding HB 2133 may revolve around the implications of increasing tax exemptions for religious organizations. Critics may argue that expanding such exemptions could lead to a decrease in public revenue which would otherwise be allocated for community services. Moreover, the logistics of determining what qualifies as 'non-contiguous' property could spark debates over fairness in applying these exemptions relative to other non-profit entities or commercial enterprises seeking similar tax relief.