By: Bonnen of Brazoria (Senate Sponsor - Huffman) H.B. No. 2999
(In the Senate - Received from the House April 24, 2017;
May 1, 2017, read first time and referred to Committee on Finance;
May 12, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 10, Nays 0; May 12, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 2999 By: Huffman
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of property
owned by certain medical centers in certain counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.23(j-1), Tax Code, is amended to read
as follows:
(j-1) Medical Center Development in Populous Counties. In a
county with a population of 3.3 million or more [described by
Section 201.1055(1), Transportation Code], all real and personal
property owned by a nonprofit corporation, as that term is defined
by Section 22.001, Business Organizations Code, organized
exclusively for benevolent, charitable, and educational purposes
[in the Texas Non-Profit Corporation Act (Article 1396-1.01 et
seq., Vernon's Texas Civil Statutes)], and held for use in the
development or operation of a medical center area or areas in which
the nonprofit corporation has donated land for a state medical,
dental, or nursing school, [and] for other hospital, medical,
educational, research, or nonprofit uses and uses reasonably
related to those uses [thereto], for auxiliary uses to support
those benevolent, charitable, and educational functions, including
the invention, development, and dissemination of materials, tools,
technologies, processes, and similar means for translating and
applying medical and scientific research for practical
applications to advance public health, or for governmental or
public purposes, including the relief of traffic congestion, [and
not leased or otherwise used with a view to profit,] is exempt from
all ad valorem taxation [as though the property were, during that
time, owned and held by the state for health and educational
purposes]. In connection with the application or enforcement of a
deed restriction or a covenant related to the property, a use or
purpose described in this subsection shall also be considered to be
a hospital, medical, or educational use, or a use that is reasonably
related to a hospital, medical, or educational use.
SECTION 2. Section 11.23(j-1), Tax Code, as amended by this
Act, does not exempt from ad valorem taxation any interest in real
or personal property, including a leasehold or other possessory
interest, of a for-profit lessee of property for which a nonprofit
corporation is entitled to an exemption from ad valorem taxation
under that subsection.
SECTION 3. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2018.
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