| 1 | 1 | | By: Taylor of Galveston S.B. No. 1030 |
|---|
| 2 | 2 | | (Murphy) |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the exemption from ad valorem taxation of real property |
|---|
| 8 | 8 | | leased to and used by certain schools. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
|---|
| 11 | 11 | | adding Section 11.211 to read as follows: |
|---|
| 12 | 12 | | Sec. 11.211. REAL PROPERTY LEASED TO CERTAIN SCHOOLS. |
|---|
| 13 | 13 | | (a) A person is entitled to an exemption from taxation of the real |
|---|
| 14 | 14 | | property that the person owns and leases to an open-enrollment |
|---|
| 15 | 15 | | charter school authorized by Subchapter D, Chapter 12, Education |
|---|
| 16 | 16 | | Code, that is qualified as provided by Section 11.21(d) of this code |
|---|
| 17 | 17 | | if: |
|---|
| 18 | 18 | | (1) the real property is used exclusively by the |
|---|
| 19 | 19 | | school for educational functions; |
|---|
| 20 | 20 | | (2) the real property is reasonably necessary for the |
|---|
| 21 | 21 | | operation of the school; |
|---|
| 22 | 22 | | (3) the owner certifies by affidavit to the school |
|---|
| 23 | 23 | | that the rent for the lease of the real property will be reduced by |
|---|
| 24 | 24 | | an amount equal to the amount by which the taxes on the property are |
|---|
| 25 | 25 | | reduced as a result of the exemption; |
|---|
| 26 | 26 | | (4) the owner provides the school with a disclosure |
|---|
| 27 | 27 | | document stating the amount by which the taxes on the real property |
|---|
| 28 | 28 | | are reduced as a result of the exemption and the method the owner |
|---|
| 29 | 29 | | will implement to ensure that the rent charged for the lease of the |
|---|
| 30 | 30 | | property fully reflects that reduction; and |
|---|
| 31 | 31 | | (5) the rent charged for the lease of the real property |
|---|
| 32 | 32 | | reflects the reduction in the amount of taxes on the property |
|---|
| 33 | 33 | | resulting from the exemption through a monthly or annual credit |
|---|
| 34 | 34 | | against the rent. |
|---|
| 35 | 35 | | (b) Section 25.07 does not apply to a leasehold interest in |
|---|
| 36 | 36 | | property for which the owner receives an exemption under this |
|---|
| 37 | 37 | | section. |
|---|
| 38 | 38 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
|---|
| 39 | 39 | | for a tax year beginning on or after the effective date of this Act. |
|---|
| 40 | 40 | | SECTION 3. This Act takes effect January 1, 2018, but only |
|---|
| 41 | 41 | | if the constitutional amendment proposed by the 85th Legislature, |
|---|
| 42 | 42 | | Regular Session, 2017, authorizing the legislature to exempt from |
|---|
| 43 | 43 | | ad valorem taxation real property leased to certain schools |
|---|
| 44 | 44 | | organized and operated primarily for the purpose of engaging in |
|---|
| 45 | 45 | | educational functions is approved by the voters. If that amendment |
|---|
| 46 | 46 | | is not approved by the voters, this Act has no effect. |
|---|