Texas 2023 - 88th Regular

Texas House Bill HB3621 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R22157 CJC-D
2	2	By: Talarico, Button, Bernal, H.B. No. 3621
3	3	Johnson of Dallas, Goodwin
4	4	Substitute the following for H.B. No. 3621:
5	5	By: Turner C.S.H.B. No. 3621
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to a local option exemption from ad valorem taxation by a
11	11	county or municipality of all or part of the appraised value of real
12	12	property used to operate a child-care facility.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
15	15	adding Section 11.36 to read as follows:
16	16	Sec. 11.36. CHILD-CARE FACILITIES. (a) In this section:
17	17	(1) "Child-care facility" means a facility licensed by
18	18	the Health and Human Services Commission to provide assessment,
19	19	care, training, education, custody, treatment, or supervision for a
20	20	child who is not related by blood, marriage, or adoption to the
21	21	owner or operator of the facility, for all or part of the 24-hour
22	22	day, whether or not the facility is operated for profit or charges
23	23	for the services it offers.
24	24	(2) "Qualifying child-care facility" means a
25	25	child-care facility:
26	26	(A) the owner or operator of which participates
27	27	in the Texas Workforce Commission's Texas Rising Star Program as
28	28	described by Section 2308.3155, Government Code, for that facility;
29	29	and
30	30	(B) at which at least 20 percent of the total
31	31	number of children enrolled at the facility receive subsidized
32	32	child-care services provided through the child-care services
33	33	program administered by the Texas Workforce Commission.
34	34	(b) Subject to Subsection (d), if the governing body of a
35	35	county or municipality in the manner required by law for official
36	36	action by the governing body adopts the exemption, a person is
37	37	entitled to an exemption from taxation by the county or
38	38	municipality of all or part of the appraised value of:
39	39	(1) the real property the person owns and operates as a
40	40	qualifying child-care facility; or
41	41	(2) the portion of the real property that the person
42	42	owns and leases to a person who uses the property to operate a
43	43	qualifying child-care facility.
44	44	(c) The governing body of a county or municipality may adopt
45	45	the exemption authorized by this section as a percentage of the
46	46	appraised value of the property. The percentage specified by the
47	47	governing body may not be less than 50 percent.
48	48	(d) To qualify for the exemption authorized by this section,
49	49	the property must be:
50	50	(1) except as provided by Subsection (e), used
51	51	exclusively to provide developmental and educational services for
52	52	children attending the child-care facility; and
53	53	(2) reasonably necessary for the operation of the
54	54	child-care facility.
55	55	(e) The use of exempt property for functions other than
56	56	providing developmental and educational services for children
57	57	attending the child-care facility located on the property does not
58	58	result in the loss of an exemption authorized by this section if
59	59	those other functions are incidental to the use of the property for
60	60	providing those services to those children and benefit:
61	61	(1) those children; or
62	62	(2) the staff and faculty of the facility.
63	63	(f) A person who claims an exemption under Subsection (b)(2)
64	64	must include with the application for the exemption an affidavit
65	65	certifying to the chief appraiser for the appraisal district that
66	66	appraises the property that is the subject of the application that:
67	67	(1) the person has provided to the child-care facility
68	68	to which the property is leased a disclosure document stating the
69	69	amount by which the taxes on the property are reduced as a result of
70	70	the exemption and the method the person will implement to ensure
71	71	that the rent charged for the lease of the property fully reflects
72	72	that reduction;
73	73	(2) the rent charged for the lease of the property
74	74	reflects the reduction in the amount of taxes on the property
75	75	resulting from the exemption through a monthly or annual credit
76	76	against the rent; and
77	77	(3) the person does not charge rent for the lease of
78	78	the property in an amount that exceeds:
79	79	(A) for property that consists of space in a
80	80	commercial property, the rent charged by the person to other
81	81	tenants of the commercial property for similar space; or
82	82	(B) for property other than property described by
83	83	Paragraph (A), the average rent charged for comparable rental
84	84	property.
85	85	(g) Notwithstanding any other provision of this section, a
86	86	person may not claim an exemption under Subsection (b)(2) for
87	87	property:
88	88	(1) for which the person claims an exemption under
89	89	Section 11.13; or
90	90	(2) any part of which is leased by the person to
91	91	another person for use as a principal residence.
92	92	(h) Property is not ineligible for an exemption under this
93	93	section if a portion of the property is used for functions other
94	94	than those described by Subsections (d) and (e). However, the
95	95	exemption does not apply to the value of the portion of the property
96	96	that is used for those other functions.
97	97	(i) Section 25.07 does not apply to a leasehold interest in
98	98	property for which the owner receives an exemption under this
99	99	section.
100	100	(j) The comptroller may adopt rules and forms necessary for
101	101	the administration of this section.
102	102	SECTION 2. Section 11.43(c), Tax Code, is amended to read as
103	103	follows:
104	104	(c) An exemption provided by Section 11.13, 11.131, 11.132,
105	105	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
106	106	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
107	107	11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or
108	108	11.36, once allowed, need not be claimed in subsequent years, and
109	109	except as otherwise provided by Subsection (e), the exemption
110	110	applies to the property until it changes ownership or the person's
111	111	qualification for the exemption changes. However, except as
112	112	provided by Subsection (r), the chief appraiser may require a
113	113	person allowed one of the exemptions in a prior year to file a new
114	114	application to confirm the person's current qualification for the
115	115	exemption by delivering a written notice that a new application is
116	116	required, accompanied by an appropriate application form, to the
117	117	person previously allowed the exemption. If the person previously
118	118	allowed the exemption is 65 years of age or older, the chief
119	119	appraiser may not cancel the exemption due to the person's failure
120	120	to file the new application unless the chief appraiser complies
121	121	with the requirements of Subsection (q), if applicable.
122	122	SECTION 3. This Act applies only to ad valorem taxes imposed
123	123	for a tax year beginning on or after the effective date of this Act.
124	124	SECTION 4. This Act takes effect January 1, 2024, but only
125	125	if the constitutional amendment proposed by the 88th Legislature,
126	126	Regular Session, 2023, authorizing a local option exemption from ad
127	127	valorem taxation by a county or municipality of all or part of the
128	128	appraised value of real property used to operate a child-care
129	129	facility is approved by the voters. If that amendment is not
130	130	approved by the voters, this Act has no effect.