86R3249 CJC-F
By: Murphy H.B. No. 388
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of real property
leased to and used by certain schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.211 to read as follows:
Sec. 11.211. REAL PROPERTY LEASED TO CERTAIN SCHOOLS. (a)
A person is entitled to an exemption from taxation of the portion of
the real property that the person owns and leases to an
open-enrollment charter school authorized by Subchapter D, Chapter
12, Education Code, that is qualified as provided by Section
11.21(d) of this code if:
(1) the real property is used exclusively by the
school for educational functions;
(2) the real property is reasonably necessary for the
operation of the school;
(3) the owner certifies by affidavit to the school
that the rent for the lease of the real property will be reduced by
an amount equal to the amount by which the taxes on the property are
reduced as a result of the exemption;
(4) the owner provides the school with a disclosure
document stating the amount by which the taxes on the real property
are reduced as a result of the exemption and the method the owner
will implement to ensure that the rent charged for the lease of the
property fully reflects that reduction; and
(5) the rent charged for the lease of the real property
reflects the reduction in the amount of taxes on the property
resulting from the exemption through a monthly or annual credit
against the rent.
(b) Section 25.07 does not apply to a leasehold interest in
property for which the owner receives an exemption under this
section.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, authorizing the legislature to exempt from
ad valorem taxation real property leased to certain schools
organized and operated primarily for the purpose of engaging in
educational functions is approved by the voters. If that amendment
is not approved by the voters, this Act has no effect.