Texas 2019 - 86th Regular

Texas House Bill HB388 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Murphy, Middleton (Senate Sponsor - Creighton) H.B. No. 388
2		-	(In the Senate - Received from the House May 9, 2019;
3		-	May 13, 2019, read first time and referred to Committee on Property
4		-	Tax; May 21, 2019, reported favorably by the following vote:
5		-	Yeas 4, Nays 0; May 21, 2019, sent to printer.)
6		-	Click here to see the committee vote
	1	+	86R23437 CJC-F
	2	+	By: Murphy, Middleton H.B. No. 388
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9	5		A BILL TO BE ENTITLED
10	6		AN ACT
11	7		relating to the exemption from ad valorem taxation of real property
12	8		leased to and used by certain schools.
13	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	10		SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
15	11		adding Section 11.211 to read as follows:
16	12		Sec. 11.211. REAL PROPERTY LEASED TO CERTAIN SCHOOLS. (a)
17	13		A person is entitled to an exemption from taxation of the portion of
18	14		the real property that the person owns and leases to an
19	15		open-enrollment charter school authorized by Subchapter D, Chapter
20	16		12, Education Code, that is qualified as provided by Section
21	17		11.21(d) of this code if:
22	18		(1) the portion of the real property that is leased to
23	19		the school is:
24	20		(A) used exclusively by the school for the
25	21		operation or administration of the school or the performance of
26	22		other educational functions by the school; and
27	23		(B) reasonably necessary for a purpose described
28	24		by Paragraph (A); and
29	25		(2) the owner of the portion of the real property that
30	26		is leased to the school certifies by affidavit to the school that:
31	27		(A) if the lease agreement requires the school to
32	28		pay the taxes imposed on the real property as a portion of the total
33	29		consideration paid to the property owner under the agreement, the
34	30		owner will reduce the total consideration required to be paid by the
35	31		school under the lease agreement by an amount equal to the amount by
36	32		which the taxes on the real property are reduced as a result of the
37	33		exemption by providing a monthly or annual credit against the total
38	34		consideration due under the agreement; or
39	35		(B) if the lease agreement requires the school to
40	36		pay the taxes imposed on the real property directly to the collector
41	37		for the applicable taxing unit or to the owner or the property
42	38		manager separately from the payment of rent to the property owner
43	39		under the agreement, the school is no longer required to pay the
44	40		taxes to the collector, owner, or property manager, as applicable,
45	41		and the rent charged to the school under the agreement is not
46	42		affected unless a term of the agreement specifically provides for a
47	43		change in the amount of the rent.
48	44		(b) A property owner required to provide an affidavit
49	45		described by Subsection (a)(2)(A) to an open-enrollment charter
50	46		school shall:
51	47		(1) provide the school with a disclosure document
52	48		stating the amount by which the taxes on the real property are
53	49		reduced as a result of the exemption and the method the owner will
54	50		implement to ensure that the total consideration for the lease of
55	51		the real property fully reflects the total amount of that
56	52		reduction; and
57	53		(2) reduce the total consideration for the lease of
58	54		the real property through a monthly or annual credit against the
59	55		total consideration to reflect the amount by which the taxes on the
60	56		real property are reduced as a result of the exemption.
61	57		(c) This section may not be construed as invalidating an
62	58		exemption from taxation of real property granted to an
63	59		open-enrollment charter school on the basis of Section 12.128,
64	60		Education Code, before January 1, 2020.
65	61		(d) Section 25.07 does not apply to a leasehold interest in
66	62		real property for which the owner receives an exemption under this
67	63		section.
68	64		SECTION 2. This Act applies only to ad valorem taxes imposed
69	65		for a tax year beginning on or after the effective date of this Act.
70	66		SECTION 3. This Act takes effect January 1, 2020, but only
71	67		if the constitutional amendment proposed by the 86th Legislature,
72	68		Regular Session, 2019, authorizing the legislature to exempt from
73	69		ad valorem taxation real property leased to certain schools
74	70		organized and operated primarily for the purpose of engaging in
75	71		educational functions is approved by the voters. If that amendment
76	72		is not approved by the voters, this Act has no effect.
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