| 1 | 1 | | 85R13673 CJC-F |
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| 2 | 2 | | By: Murphy, Frank, Villalba, Wu, Raymond, H.B. No. 382 |
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| 3 | 3 | | et al. |
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| 4 | 4 | | Substitute the following for H.B. No. 382: |
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| 5 | 5 | | By: Darby C.S.H.B. No. 382 |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | relating to the exemption from ad valorem taxation of real property |
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| 11 | 11 | | leased to and used by certain schools. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 14 | 14 | | adding Section 11.211 to read as follows: |
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| 15 | 15 | | Sec. 11.211. REAL PROPERTY LEASED TO CERTAIN SCHOOLS. (a) |
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| 16 | 16 | | A person is entitled to an exemption from taxation of the portion of |
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| 17 | 17 | | the real property that the person owns and leases to an |
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| 18 | 18 | | open-enrollment charter school authorized by Subchapter D, Chapter |
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| 19 | 19 | | 12, Education Code, that is qualified as provided by Section |
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| 20 | 20 | | 11.21(d) of this code if: |
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| 21 | 21 | | (1) the real property is used exclusively by the |
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| 22 | 22 | | school for educational functions; |
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| 23 | 23 | | (2) the real property is reasonably necessary for the |
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| 24 | 24 | | operation of the school; |
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| 25 | 25 | | (3) the owner certifies by affidavit to the school |
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| 26 | 26 | | that the rent for the lease of the real property will be reduced by |
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| 27 | 27 | | an amount equal to the amount by which the taxes on the property are |
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| 28 | 28 | | reduced as a result of the exemption; |
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| 29 | 29 | | (4) the owner provides the school with a disclosure |
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| 30 | 30 | | document stating the amount by which the taxes on the real property |
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| 31 | 31 | | are reduced as a result of the exemption and the method the owner |
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| 32 | 32 | | will implement to ensure that the rent charged for the lease of the |
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| 33 | 33 | | property fully reflects that reduction; and |
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| 34 | 34 | | (5) the rent charged for the lease of the real property |
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| 35 | 35 | | reflects the reduction in the amount of taxes on the property |
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| 36 | 36 | | resulting from the exemption through a monthly or annual credit |
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| 37 | 37 | | against the rent. |
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| 38 | 38 | | (b) Section 25.07 does not apply to a leasehold interest in |
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| 39 | 39 | | property for which the owner receives an exemption under this |
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| 40 | 40 | | section. |
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| 41 | 41 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 42 | 42 | | for a tax year beginning on or after the effective date of this Act. |
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| 43 | 43 | | SECTION 3. This Act takes effect January 1, 2018, but only |
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| 44 | 44 | | if the constitutional amendment proposed by the 85th Legislature, |
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| 45 | 45 | | Regular Session, 2017, authorizing the legislature to exempt from |
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| 46 | 46 | | ad valorem taxation real property leased to certain schools |
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| 47 | 47 | | organized and operated primarily for the purpose of engaging in |
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| 48 | 48 | | educational functions is approved by the voters. If that amendment |
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| 49 | 49 | | is not approved by the voters, this Act has no effect. |
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