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