| 1 | 1 | | 85R14200 TJB-F |
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| 2 | 2 | | By: Huffman S.B. No. 1809 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the exemption from ad valorem taxation of property |
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| 8 | 8 | | owned by certain medical centers in certain counties. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 11.23(j-1), Tax Code, is amended to read |
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| 11 | 11 | | as follows: |
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| 12 | 12 | | (j-1) Medical Center Development in Populous Counties. In a |
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| 13 | 13 | | county with a population of 3.3 million or more [described by |
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| 14 | 14 | | Section 201.1055(1), Transportation Code], all real and personal |
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| 15 | 15 | | property owned by a nonprofit corporation, as that term is defined |
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| 16 | 16 | | by Section 22.001, Business Organizations Code, organized |
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| 17 | 17 | | exclusively for benevolent, charitable, and educational purposes |
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| 18 | 18 | | [in the Texas Non-Profit Corporation Act (Article 1396-1.01 et |
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| 19 | 19 | | seq., Vernon's Texas Civil Statutes)], and held for use in the |
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| 20 | 20 | | development or operation of a medical center area or areas in which |
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| 21 | 21 | | the nonprofit corporation has donated land for a state medical, |
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| 22 | 22 | | dental, or nursing school, [and] for other hospital, medical, |
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| 23 | 23 | | educational, research, or nonprofit uses and uses reasonably |
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| 24 | 24 | | related to those uses [thereto], for auxiliary uses to support |
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| 25 | 25 | | those benevolent, charitable, and educational functions, including |
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| 26 | 26 | | the invention, development, and dissemination of materials, tools, |
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| 27 | 27 | | technologies, processes, and similar means for translating and |
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| 28 | 28 | | applying medical and scientific research for practical |
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| 29 | 29 | | applications to advance public health, or for governmental or |
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| 30 | 30 | | public purposes, including the relief of traffic congestion, [and |
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| 31 | 31 | | not leased or otherwise used with a view to profit,] is exempt from |
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| 32 | 32 | | all ad valorem taxation [as though the property were, during that |
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| 33 | 33 | | time, owned and held by the state for health and educational |
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| 34 | 34 | | purposes]. In connection with the application or enforcement of a |
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| 35 | 35 | | deed restriction or a covenant related to the property, a use or |
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| 36 | 36 | | purpose described in this subsection shall also be considered to be |
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| 37 | 37 | | a hospital, medical, or educational use, or a use that is reasonably |
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| 38 | 38 | | related to a hospital, medical, or educational use. |
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| 39 | 39 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 40 | 40 | | for a tax year beginning on or after the effective date of this Act. |
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| 41 | 41 | | SECTION 3. This Act takes effect January 1, 2018. |
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