Texas 2019 - 86th Regular

Texas Senate Bill SB2345

Caption

Relating to the exemption from ad valorem taxation of real property leased to and used by certain schools.

Impact

The bill will directly affect state laws governing how property taxes are applied to real estate leased to educational institutions. By allowing property owners to receive tax exemptions when leasing to charter schools, it aims to encourage and facilitate the growth of such schools in Texas. This adjustment in tax policy may lead to an increase in the availability of educational facilities dedicated to charter schools, thus potentially impacting the broader educational landscape in the state.

Summary

SB2345 aims to provide an exemption from ad valorem taxation for real properties leased to certain schools, specifically open-enrollment charter schools. The legislation seeks to exempt portions of real property leased by the owner to a qualified open-enrollment charter school from taxation, as long as the property is used exclusively for educational purposes. This measure is designed to alleviate the financial burden on charter schools, enabling them to allocate more resources toward educational activities rather than tax liabilities.

Sentiment

The sentiment surrounding SB2345 appears to be generally supportive among proponents of charter schools and those advocating for educational funding reform. Supporters argue that the bill represents a significant step toward improving financial accessibility for charter schools, thereby enhancing educational opportunities for students. However, there may be contention around the perspectives of traditional public school advocates who could see this measure as a diversion of funding away from the public school system.

Contention

Notable points of contention regarding SB2345 might include debates about fairness in educational funding, as critics may worry that favoring charter schools through property tax exemptions could exacerbate inequalities between public and charter schools. Furthermore, there may be concerns regarding the sustainability of funding for public schools if exemptions lead to a broader trend of reduced tax revenues. The bill's eventual approval depends on the supporting constitutional amendment, emphasizing the necessity for public approval to facilitate these taxation changes.

Companion Bills

TX HB388

Same As Relating to the exemption from ad valorem taxation of real property leased to and used by certain schools.

TX SJR74

Enabling for Proposing a constitutional amendment 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.

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