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 enacted, HJR51 would create a new provision in the Texas Constitution, specifically in Article VIII, adding Section 1-r. This section would empower local governments to offer tax exemptions for specific nonprofit entities, potentially leading to a significant reduction in tax revenue from mineral interests. The bill's design focuses on enhancing the operational capabilities of charitable nonprofits, allowing them to utilize their resources more effectively without the burden of property taxation. This could lead to increased resources available for community services provided by these organizations.
Summary
HJR51 proposes a constitutional amendment that allows the governing body of a political subdivision in Texas to exempt from ad valorem taxation mineral interests owned by nonprofit corporations. These nonprofits must be organized specifically to generate income for charitable organizations through their management of real property, including buildings and mineral interests. The bill aims to support nonprofits that engage in providing critical services without charging a fee and without accepting government funds, thus fostering a more favorable environment for charity-driven initiatives.
Contention
Notable points of contention surrounding HJR51 stem from the implications of tax exemptions on local government revenue. Critics may express concerns that a broad application of tax exemptions could significantly impact funding for essential public services, as local governments rely on property taxes for their budgets. Additionally, opponents could argue that this bill may create inequities between different nonprofit organizations, depending on their capacity to manage mineral interests effectively. The balance between supporting charitable organizations and maintaining adequate public funding levels is likely to be a key topic in discussions around this bill.
Enabled by
Relating to the authority of the governing body of a taxing unit 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.
Relating to an exemption from ad valorem taxation of real property owned by a charitable organization for the purpose of renting the property at below-market rates to low-income and moderate-income households.
Relating to an exemption from ad valorem taxation of real property owned by a charitable organization for the purpose of renting the property at below-market rates to low-income and moderate-income households.
Proposing a constitutional amendment authorizing the governing body of a political subdivision other than a school district to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the market value of an individual's residence homestead.
Relating to an exemption from ad valorem taxation of the real and personal property owned and exclusively used by a labor organization for the organization's operations.
Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the market value of an individual's residence homestead.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation the real and personal property owned and exclusively used by a labor organization for the organization's operations.