| 1 | 1 | | By: Talarico H.B. No. 1801 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to an exemption from ad valorem taxation of real property |
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| 7 | 7 | | used to operate a child-care facility. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 10 | 10 | | adding Section 11.36 to read as follows: |
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| 11 | 11 | | Sec. 11.36. CHILD-CARE FACILITIES. (a) In this section, |
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| 12 | 12 | | "child-care facility" has the meaning assigned by Section 42.002, |
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| 13 | 13 | | Human Resources Code. |
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| 14 | 14 | | (b) A person is entitled to an exemption from taxation of |
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| 15 | 15 | | the real property the person owns and operates as a child-care |
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| 16 | 16 | | facility that qualifies as provided by Subsection (d) if: |
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| 17 | 17 | | (1) except as provided by Subsection (c), the property |
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| 18 | 18 | | is used exclusively to provide developmental and educational |
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| 19 | 19 | | services for children attending the facility; and |
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| 20 | 20 | | (2) the property is reasonably necessary for the |
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| 21 | 21 | | operation of the facility. |
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| 22 | 22 | | (c) The use of exempt property for functions other than |
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| 23 | 23 | | providing developmental and educational services for children |
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| 24 | 24 | | attending the child-care facility located on the property does not |
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| 25 | 25 | | result in the loss of an exemption authorized by this section if |
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| 26 | 26 | | those other functions are incidental to the use of the property for |
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| 27 | 27 | | providing those services to those children and benefit: |
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| 28 | 28 | | (1) those children; or |
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| 29 | 29 | | (2) the staff and faculty of the facility. |
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| 30 | 30 | | (d) To qualify as a child-care facility for purposes of this |
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| 31 | 31 | | section, an entity, whether operated by an individual, as a |
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| 32 | 32 | | corporation, or as an association, must be accredited by a |
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| 33 | 33 | | nationally recognized accrediting organization for child-care or |
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| 34 | 34 | | early childhood education facilities or programs approved by the |
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| 35 | 35 | | Texas Workforce Commission and the Department of Family and |
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| 36 | 36 | | Protective Services as applying criteria for accreditation |
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| 37 | 37 | | adequate to ensure the quality of an accredited facility or |
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| 38 | 38 | | program, such as the National Association for the Education of |
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| 39 | 39 | | Young Children or the National Early Childhood Program |
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| 40 | 40 | | Accreditation Commission. |
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| 41 | 41 | | (e) Property is not ineligible for an exemption under this |
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| 42 | 42 | | section if a portion of the property is used for functions other |
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| 43 | 43 | | than those described by Subsections (b) and (c). However, the |
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| 44 | 44 | | exemption does not apply to the value of the portion of the property |
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| 45 | 45 | | that is used for those other functions. |
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| 46 | 46 | | SECTION 2. Section 11.43(c), Tax Code, is amended to read as |
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| 47 | 47 | | follows: |
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| 48 | 48 | | (c) An exemption provided by Section 11.13, 11.131, 11.132, |
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| 49 | 49 | | 11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, |
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| 50 | 50 | | 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, |
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| 51 | 51 | | 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or |
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| 52 | 52 | | 11.36, once allowed, need not be claimed in subsequent years, and |
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| 53 | 53 | | except as otherwise provided by Subsection (e), the exemption |
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| 54 | 54 | | applies to the property until it changes ownership or the person's |
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| 55 | 55 | | qualification for the exemption changes. However, except as |
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| 56 | 56 | | provided by Subsection (r), the chief appraiser may require a |
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| 57 | 57 | | person allowed one of the exemptions in a prior year to file a new |
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| 58 | 58 | | application to confirm the person's current qualification for the |
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| 59 | 59 | | exemption by delivering a written notice that a new application is |
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| 60 | 60 | | required, accompanied by an appropriate application form, to the |
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| 61 | 61 | | person previously allowed the exemption. If the person previously |
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| 62 | 62 | | allowed the exemption is 65 years of age or older, the chief |
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| 63 | 63 | | appraiser may not cancel the exemption due to the person's failure |
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| 64 | 64 | | to file the new application unless the chief appraiser complies |
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| 65 | 65 | | with the requirements of Subsection (q), if applicable. |
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| 66 | 66 | | SECTION 3. This Act applies only to ad valorem taxes imposed |
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| 67 | 67 | | for a tax year beginning on or after the effective date of this Act. |
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| 68 | 68 | | SECTION 4. This Act takes effect January 1, 2024, but only |
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| 69 | 69 | | if the constitutional amendment proposed by the 88th Legislature, |
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| 70 | 70 | | Regular Session, 2023, authorizing the legislature to exempt from |
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| 71 | 71 | | ad valorem taxation real property used to operate a child-care |
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| 72 | 72 | | facility is approved by the voters. If that amendment is not |
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| 73 | 73 | | approved by the voters, this Act has no effect. |
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