Texas 2023 - 88th Regular

Texas House Bill HB3691 Compare Versions

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Version 2 (New)

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1	1	88R27025 RDS-F
2	2	By: Hefner H.B. No. 3691
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption from ad valorem taxation of certain
8	8	property owned by a charitable organization that is engaged in
9	9	providing housing and related facilities and services to persons
10	10	who are at least 62 years of age.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 11.18(d), Tax Code, is amended to read as
13	13	follows:
14	14	(d) A charitable organization must be organized exclusively
15	15	to perform religious, charitable, scientific, literary, or
16	16	educational purposes and, except as permitted by Subsections (h)
17	17	and (l), engage exclusively in performing one or more of the
18	18	following charitable functions:
19	19	(1) providing medical care without regard to the
20	20	beneficiaries' ability to pay, which in the case of a nonprofit
21	21	hospital or hospital system means providing charity care and
22	22	community benefits in accordance with Section 11.1801;
23	23	(2) providing support or relief to orphans, delinquent
24	24	or [,] dependent[, or handicapped] children in need of residential
25	25	care, children with disabilities in need of residential care,
26	26	abused or battered spouses or children in need of temporary
27	27	shelter, the impoverished, or victims of natural disaster without
28	28	regard to the beneficiaries' ability to pay;
29	29	(3) providing support without regard to the
30	30	beneficiaries' ability to pay to:
31	31	(A) elderly persons, including the provision of:
32	32	(i) recreational or social activities; and
33	33	(ii) facilities designed to address the
34	34	special needs of elderly persons; or
35	35	(B) persons with disabilities [the handicapped],
36	36	including training and employment:
37	37	(i) in the production of commodities; or
38	38	(ii) in the provision of services under 41
39	39	U.S.C. Sections 8501-8506;
40	40	(4) preserving a historical landmark or site;
41	41	(5) promoting or operating a museum, zoo, library,
42	42	theater of the dramatic or performing arts, or symphony orchestra
43	43	or choir;
44	44	(6) promoting or providing humane treatment of
45	45	animals;
46	46	(7) acquiring, storing, transporting, selling, or
47	47	distributing water for public use;
48	48	(8) answering fire alarms and extinguishing fires with
49	49	no compensation or only nominal compensation to the members of the
50	50	organization;
51	51	(9) promoting the athletic development of boys or
52	52	girls under the age of 18 years;
53	53	(10) preserving or conserving wildlife;
54	54	(11) promoting educational development through loans
55	55	or scholarships to students;
56	56	(12) providing halfway house services pursuant to a
57	57	certification as a halfway house by the parole division of the Texas
58	58	Department of Criminal Justice;
59	59	(13) providing permanent housing and related social,
60	60	health care, and educational facilities for persons who are 62
61	61	years of age or older:
62	62	(A) without regard to the residents' ability to
63	63	pay; or
64	64	(B) as an organization that provides charitable
65	65	housing and services in an amount that is not less than four percent
66	66	of the charitable organization's net resident revenue;
67	67	(14) promoting or operating an art gallery, museum, or
68	68	collection, in a permanent location or on tour, that is open to the
69	69	public;
70	70	(15) providing for the organized solicitation and
71	71	collection for distributions through gifts, grants, and agreements
72	72	to nonprofit charitable, education, religious, and youth
73	73	organizations that provide direct human, health, and welfare
74	74	services;
75	75	(16) performing biomedical or scientific research or
76	76	biomedical or scientific education for the benefit of the public;
77	77	(17) operating a television station that produces or
78	78	broadcasts educational, cultural, or other public interest
79	79	programming and that receives grants from the Corporation for
80	80	Public Broadcasting under 47 U.S.C. Section 396, as amended;
81	81	(18) providing housing for low-income and
82	82	moderate-income families, for unmarried individuals 62 years of age
83	83	or older, for [handicapped] individuals with disabilities, and for
84	84	families displaced by urban renewal, through the use of trust
85	85	assets that are irrevocably and, pursuant to a contract entered
86	86	into before December 31, 1972, contractually dedicated on the sale
87	87	or disposition of the housing to a charitable organization that
88	88	performs charitable functions described by Subdivision (9);
89	89	(19) providing housing and related services to persons
90	90	who are 62 years of age or older in a retirement community, if the
91	91	retirement community provides independent living services,
92	92	assisted living services, and nursing services to its residents on
93	93	a single campus:
94	94	(A) without regard to the residents' ability to
95	95	pay; or
96	96	(B) as an organization that provides charitable
97	97	housing and services in an amount that is not less than four percent
98	98	of the charitable organization's net resident revenue [in which at
99	99	least four percent of the retirement community's combined net
100	100	resident revenue is provided in charitable care to its residents];
101	101	(20) providing housing on a cooperative basis to
102	102	students of an institution of higher education if:
103	103	(A) the organization is exempt from federal
104	104	income taxation under Section 501(a), Internal Revenue Code of
105	105	1986, as amended, by being listed as an exempt entity under Section
106	106	501(c)(3) of that code;
107	107	(B) membership in the organization is open to all
108	108	students enrolled in the institution and is not limited to those
109	109	chosen by current members of the organization;
110	110	(C) the organization is governed by its members;
111	111	and
112	112	(D) the members of the organization share the
113	113	responsibility for managing the housing;
114	114	(21) acquiring, holding, and transferring unimproved
115	115	real property under an urban land bank demonstration program
116	116	established under Chapter 379C, Local Government Code, as or on
117	117	behalf of a land bank;
118	118	(22) acquiring, holding, and transferring unimproved
119	119	real property under an urban land bank program established under
120	120	Chapter 379E, Local Government Code, as or on behalf of a land bank;
121	121	(23) providing housing and related services to
122	122	individuals who:
123	123	(A) are unaccompanied and homeless and have a
124	124	disabling condition; and
125	125	(B) have been continuously homeless for a year or
126	126	more or have had at least four episodes of homelessness in the
127	127	preceding three years;
128	128	(24) operating a radio station that broadcasts
129	129	educational, cultural, or other public interest programming,
130	130	including classical music, and that in the preceding five years has
131	131	received or been selected to receive one or more grants from the
132	132	Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
133	133	amended; or
134	134	(25) providing, without regard to the beneficiaries'
135	135	ability to pay, tax return preparation services and assistance with
136	136	other financial matters.
137	137	SECTION 2. Section 11.18(k), Tax Code, is amended by adding
138	138	Subdivision (1-a) to read as follows:
139	139	(1-a) "Charitable housing and services" means the
140	140	following provided by a charitable organization to a person 62
141	141	years of age or older in financial need:
142	142	(A) housing, including as an independent living
143	143	facility, assisted living facility, or nursing facility; and
144	144	(B) any service designed to meet the unique needs
145	145	of a person 62 years of age or older, including:
146	146	(i) ministerial services;
147	147	(ii) government-sponsored indigent health
148	148	care;
149	149	(iii) social services;
150	150	(iv) health services;
151	151	(v) educational services; and
152	152	(vi) donations to an organization that
153	153	qualifies for an exemption under Subsection (d)(13) or (19).
154	154	SECTION 3. The changes in law made by this Act apply only to
155	155	an ad valorem tax year that begins on or after the effective date of
156	156	this Act.
157	157	SECTION 4. This Act takes effect January 1, 2024.