| 1 | 1 | | By: Taylor of Galveston S.J.R. No. 42 |
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| 2 | 2 | | (Murphy) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | proposing a constitutional amendment authorizing the legislature |
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| 6 | 6 | | to exempt from ad valorem taxation real property leased to certain |
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| 7 | 7 | | schools organized and operated primarily for the purpose of |
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| 8 | 8 | | engaging in educational functions. |
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| 9 | 9 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2(a), Article VIII, Texas Constitution, |
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| 11 | 11 | | is amended to read as follows: |
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| 12 | 12 | | (a) All occupation taxes shall be equal and uniform upon the |
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| 13 | 13 | | same class of subjects within the limits of the authority levying |
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| 14 | 14 | | the tax; but the legislature may, by general laws, exempt from |
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| 15 | 15 | | taxation public property used for public purposes; actual places of |
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| 16 | 16 | | religious worship, also any property owned by a church or by a |
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| 17 | 17 | | strictly religious society for the exclusive use as a dwelling |
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| 18 | 18 | | place for the ministry of such church or religious society, and |
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| 19 | 19 | | which yields no revenue whatever to such church or religious |
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| 20 | 20 | | society; provided that such exemption shall not extend to more |
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| 21 | 21 | | property than is reasonably necessary for a dwelling place and in no |
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| 22 | 22 | | event more than one acre of land; any property owned by a church or |
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| 23 | 23 | | by a strictly religious society that owns an actual place of |
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| 24 | 24 | | religious worship if the property is owned for the purpose of |
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| 25 | 25 | | expansion of the place of religious worship or construction of a new |
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| 26 | 26 | | place of religious worship and the property yields no revenue |
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| 27 | 27 | | whatever to the church or religious society, provided that the |
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| 28 | 28 | | legislature by general law may provide eligibility limitations for |
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| 29 | 29 | | the exemption and may impose sanctions related to the exemption in |
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| 30 | 30 | | furtherance of the taxation policy of this subsection; any property |
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| 31 | 31 | | that is owned by a church or by a strictly religious society and is |
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| 32 | 32 | | leased by that church or strictly religious society to a person for |
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| 33 | 33 | | use as a school, as defined by Section 11.21, Tax Code, or a |
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| 34 | 34 | | successor statute, for educational purposes; any real property that |
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| 35 | 35 | | is leased to a person for use as a school that operates under a |
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| 36 | 36 | | charter granted by the State Board of Education, the commissioner |
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| 37 | 37 | | of education, or any other state agency or officer and that is |
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| 38 | 38 | | qualified as provided by Section 11.21, Tax Code, or a successor |
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| 39 | 39 | | statute; places of burial not held for private or corporate profit; |
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| 40 | 40 | | solar or wind-powered energy devices; all buildings used |
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| 41 | 41 | | exclusively and owned by persons or associations of persons for |
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| 42 | 42 | | school purposes and the necessary furniture of all schools and |
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| 43 | 43 | | property used exclusively and reasonably necessary in conducting |
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| 44 | 44 | | any association engaged in promoting the religious, educational and |
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| 45 | 45 | | physical development of boys, girls, young men or young women |
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| 46 | 46 | | operating under a State or National organization of like character; |
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| 47 | 47 | | also the endowment funds of such institutions of learning and |
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| 48 | 48 | | religion not used with a view to profit; and when the same are |
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| 49 | 49 | | invested in bonds or mortgages, or in land or other property which |
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| 50 | 50 | | has been and shall hereafter be bought in by such institutions under |
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| 51 | 51 | | foreclosure sales made to satisfy or protect such bonds or |
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| 52 | 52 | | mortgages, that such exemption of such land and property shall |
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| 53 | 53 | | continue only for two years after the purchase of the same at such |
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| 54 | 54 | | sale by such institutions and no longer, and institutions engaged |
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| 55 | 55 | | primarily in public charitable functions, which may conduct |
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| 56 | 56 | | auxiliary activities to support those charitable functions; and all |
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| 57 | 57 | | laws exempting property from taxation other than the property |
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| 58 | 58 | | mentioned in this Section shall be null and void. |
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| 59 | 59 | | SECTION 2. The following temporary provision is added to |
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| 60 | 60 | | the Texas Constitution: |
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| 61 | 61 | | TEMPORARY PROVISION. (a) This temporary provision applies |
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| 62 | 62 | | to the constitutional amendment proposed by the 85th Legislature, |
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| 63 | 63 | | Regular Session, 2017, authorizing the legislature to exempt from |
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| 64 | 64 | | ad valorem taxation real property leased to certain schools |
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| 65 | 65 | | organized and operated primarily for the purpose of engaging in |
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| 66 | 66 | | educational functions. |
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| 67 | 67 | | (b) The amendment to Section 2(a), Article VIII, of this |
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| 68 | 68 | | constitution takes effect beginning with the tax year that begins |
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| 69 | 69 | | January 1, 2018. |
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| 70 | 70 | | (c) This temporary provision expires January 1, 2019. |
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| 71 | 71 | | SECTION 3. This proposed constitutional amendment shall be |
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| 72 | 72 | | submitted to the voters at an election to be held November 7, 2017. |
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| 73 | 73 | | The ballot shall be printed to permit voting for or against the |
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| 74 | 74 | | proposition: "The constitutional amendment authorizing the |
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| 75 | 75 | | legislature to exempt from ad valorem taxation real property leased |
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| 76 | 76 | | to certain schools organized and operated primarily for the purpose |
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| 77 | 77 | | of engaging in educational functions." |
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