H.B. No. 456
AN ACT
relating to an exemption from ad valorem taxation of certain
interests in a mineral in place owned by certain charitable
organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.18(a), Tax Code, is amended to read as
follows:
(a) An organization that qualifies as a charitable
organization as provided by this section is entitled to an
exemption from taxation of:
(1) the buildings and tangible personal property that:
(A) are owned by the charitable organization; and
(B) except as permitted by Subsection (b), are
used exclusively by qualified charitable organizations; [and]
(2) the real property owned by the charitable
organization consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used
exclusively by qualified charitable organizations; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement by qualified charitable organizations; and
(3) if the charitable organization is described by
Subsection (d)(1), (2), (3)(A)(ii), (5), (8), (13), (15), or (19),
the real property owned by the charitable organization consisting
of an interest in a mineral in place, including a royalty interest,
provided that the interest:
(A) is not severed from the surface estate; or
(B) was donated to the charitable organization by
the previous owner of the interest.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2024.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 456 was passed by the House on April
5, 2023, by the following vote: Yeas 145, Nays 1, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 456 on May 25, 2023, by the following vote: Yeas 135, Nays 2, 1
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 456 was passed by the Senate, with
amendments, on May 21, 2023, by the following vote: Yeas 29, Nays
2.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor