Relating to the exemption from ad valorem taxation of property owned by a charitable organization and used to provide tax return preparation and other financial services without regard to the beneficiaries' ability to pay.
Impact
The passage of SB1345 would lead to a significant alteration in state tax law, particularly affecting statutes relating to property taxation for charitable entities. By exempting property used for tax preparation and financial assistance, the bill encourages charitable organizations to expand their services to underprivileged populations without the added concern of property tax liabilities. This support aims not only to uplift those in need but also to foster a stronger volunteer and non-profit sector in Texas, potentially enhancing community welfare as more individuals gain access to essential financial services.
Summary
SB1345 is a legislative bill that amends the Tax Code of Texas to provide an exemption from ad valorem taxation for property owned by charitable organizations, specifically targeting organizations that offer tax return preparation and other financial services without considering the beneficiaries' ability to pay. This change aims to support these organizations by alleviating their tax burdens, thereby promoting their capacity to provide vital services to low-income individuals and families. The effective date for this exemption is set for January 1, 2018, allowing organizations to benefit from this amendment in future tax years.
Sentiment
The sentiment surrounding SB1345 appears to be largely positive among supporters, who argue that the bill is a necessary step in facilitating the work of charitable organizations dedicated to helping the less fortunate. Advocates highlight that the ability for these organizations to operate without the burden of taxation will increase their capacity to serve those in financial distress. However, there is also a reserved caution amongst some watchdog organizations and fiscal conservatives who express concerns regarding the implications of such tax exemptions on state revenue and the equitable treatment of all tax entities.
Contention
Despite its support, SB1345 has faced some contention regarding the balance between fostering charitable enterprises and protecting the state's revenue. Opponents of the bill argue that the expansion of property tax exemptions could ultimately lead to a decrease in public funds available for essential services that support the entire community. The debate has raised questions about where the line should be drawn in terms of tax exemptions for charitable organizations and whether such frameworks might inadvertently create an uneven playing field between for-profit and non-profit entities.
Relating to an exemption from ad valorem taxation of property owned by a charitable organization that provides services related to the placement of a child in a foster or adoptive home.
Relating to the exemption from ad valorem taxation of property owned by a charitable organization that provides a meeting place and support services for organizations that provide assistance to persons with substance use disorders and their families.
Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.
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.
Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.