Texas 2019 - 86th Regular

Texas House Bill HB1201 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R19288 LHC-D
2		-	By: Raymond, Guillen H.B. No. 1201
3		-	Substitute the following for H.B. No. 1201:
4		-	By: Rodriguez C.S.H.B. No. 1201
	1	+	86R5619 LHC-D
	2	+	By: Raymond H.B. No. 1201
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to an exemption from ad valorem taxation of real property
10	8		owned by a charitable organization for the purpose of renting the
11		-	property at below-market rates to low-income ~~and~~ moderate-income
12		-	~~households~~.
	9	+	property at below-market rates to low-income or moderate-income
	10	+	individuals or families.
13	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	12		SECTION 1. Section 11.18, Tax Code, is amended by amending
15	13		Subsection (d) and adding Subsection (r) to read as follows:
16	14		(d) A charitable organization must be organized exclusively
17	15		to perform religious, charitable, scientific, literary, or
18	16		educational purposes and, except as permitted by Subsections (h)
19	17		and (l), engage exclusively in performing one or more of the
20	18		following charitable functions:
21	19		(1) providing medical care without regard to the
22	20		beneficiaries' ability to pay, which in the case of a nonprofit
23	21		hospital or hospital system means providing charity care and
24	22		community benefits in accordance with Section 11.1801;
25	23		(2) providing support or relief to orphans,
26	24		delinquent, dependent, or handicapped children in need of
27	25		residential care, abused or battered spouses or children in need of
28	26		temporary shelter, the impoverished, or victims of natural disaster
29	27		without regard to the beneficiaries' ability to pay;
30	28		(3) providing support without regard to the
31	29		beneficiaries' ability to pay to:
32	30		(A) elderly persons, including the provision of:
33	31		(i) recreational or social activities; and
34	32		(ii) facilities designed to address the
35	33		special needs of elderly persons; or
36	34		(B) the handicapped, including training and
37	35		employment:
38	36		(i) in the production of commodities; or
39	37		(ii) in the provision of services under 41
40	38		U.S.C. Sections 8501-8506;
41	39		(4) preserving a historical landmark or site;
42	40		(5) promoting or operating a museum, zoo, library,
43	41		theater of the dramatic or performing arts, or symphony orchestra
44	42		or choir;
45	43		(6) promoting or providing humane treatment of
46	44		animals;
47	45		(7) acquiring, storing, transporting, selling, or
48	46		distributing water for public use;
49	47		(8) answering fire alarms and extinguishing fires with
50	48		no compensation or only nominal compensation to the members of the
51	49		organization;
52	50		(9) promoting the athletic development of boys or
53	51		girls under the age of 18 years;
54	52		(10) preserving or conserving wildlife;
55	53		(11) promoting educational development through loans
56	54		or scholarships to students;
57	55		(12) providing halfway house services pursuant to a
58	56		certification as a halfway house by the parole division of the Texas
59	57		Department of Criminal Justice;
60	58		(13) providing permanent housing and related social,
61	59		health care, and educational facilities for persons who are 62
62	60		years of age or older without regard to the residents' ability to
63	61		pay;
64	62		(14) promoting or operating an art gallery, museum, or
65	63		collection, in a permanent location or on tour, that is open to the
66	64		public;
67	65		(15) providing for the organized solicitation and
68	66		collection for distributions through gifts, grants, and agreements
69	67		to nonprofit charitable, education, religious, and youth
70	68		organizations that provide direct human, health, and welfare
71	69		services;
72	70		(16) performing biomedical or scientific research or
73	71		biomedical or scientific education for the benefit of the public;
74	72		(17) operating a television station that produces or
75	73		broadcasts educational, cultural, or other public interest
76	74		programming and that receives grants from the Corporation for
77	75		Public Broadcasting under 47 U.S.C. Section 396, as amended;
78	76		(18) providing housing for low-income and
79	77		moderate-income families, for unmarried individuals 62 years of age
80	78		or older, for handicapped individuals, and for families displaced
81	79		by urban renewal, through the use of trust assets that are
82	80		irrevocably and, pursuant to a contract entered into before
83	81		December 31, 1972, contractually dedicated on the sale or
84	82		disposition of the housing to a charitable organization that
85	83		performs charitable functions described by Subdivision (9);
86	84		(19) providing housing and related services to persons
87	85		who are 62 years of age or older in a retirement community, if the
88	86		retirement community provides independent living services,
89	87		assisted living services, and nursing services to its residents on
90	88		a single campus:
91	89		(A) without regard to the residents' ability to
92	90		pay; or
93	91		(B) in which at least four percent of the
94	92		retirement community's combined net resident revenue is provided in
95	93		charitable care to its residents;
96	94		(20) providing housing on a cooperative basis to
97	95		students of an institution of higher education if:
98	96		(A) the organization is exempt from federal
99	97		income taxation under Section 501(a), Internal Revenue Code of
100	98		1986, as amended, by being listed as an exempt entity under Section
101	99		501(c)(3) of that code;
102	100		(B) membership in the organization is open to all
103	101		students enrolled in the institution and is not limited to those
104	102		chosen by current members of the organization;
105	103		(C) the organization is governed by its members;
106	104		and
107	105		(D) the members of the organization share the
108	106		responsibility for managing the housing;
109	107		(21) acquiring, holding, and transferring unimproved
110	108		real property under an urban land bank demonstration program
111	109		established under Chapter 379C, Local Government Code, as or on
112	110		behalf of a land bank;
113	111		(22) acquiring, holding, and transferring unimproved
114	112		real property under an urban land bank program established under
115	113		Chapter 379E, Local Government Code, as or on behalf of a land bank;
116	114		(23) providing housing and related services to
117	115		individuals who:
118	116		(A) are unaccompanied and homeless and have a
119	117		disabling condition; and
120	118		(B) have been continuously homeless for a year or
121	119		more or have had at least four episodes of homelessness in the
122	120		preceding three years;
123	121		(24) operating a radio station that broadcasts
124	122		educational, cultural, or other public interest programming,
125	123		including classical music, and that in the preceding five years has
126	124		received or been selected to receive one or more grants from the
127	125		Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
128	126		amended; [or]
129	127		(25) providing, without regard to the beneficiaries'
130	128		ability to pay, tax return preparation services and assistance with
131	129		other financial matters; or
132	130		(26) providing:
133		-	(A) services as a HUD-approved housing
134		-	counseling agency, as defined by 24 C.F.R. Section 214.3, without
135		-	regard to the beneficiaries' ability to pay; and
	131	+	(A) housing counseling services without regard
	132	+	to the beneficiaries' ability to pay; and
136	133		(B) rental housing to low-income and
137		-	moderate-income ~~households~~ at below-market rates.
	134	+	moderate-income individuals and families at below-market rates.
138	135		(r) The exemption authorized by Subsection (d)(26) applies
139	136		only to property that is used to provide rental housing to
140		-	low-income and moderate-income households at below-market rates.
	137	+	low-income and moderate-income individuals and families at
	138	+	below-market rates.
141	139		SECTION 2. This Act applies only to an ad valorem tax year
142	140		that begins on or after the effective date of this Act.
143	141		SECTION 3. This Act takes effect January 1, 2020.