Texas 2023 - 88th Regular

Texas House Bill HB4774 Compare Versions

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Version 2 (New)

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1	1	88R15782 DRS-F
2	2	By: Button H.B. No. 4774
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 property
8	8	owned by an organization engaged primarily in performing charitable
9	9	functions.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.184, Tax Code, is amended by amending
12	12	Subsection (k) and adding Subsections (k-1), (k-2), (k-3), and
13	13	(k-4) to read as follows:
14	14	(k) An exemption under this section expires when:
15	15	(1) the organization no longer owns the property
16	16	described by Subsection (c); or
17	17	(2) the comptroller determines based on the factors
18	18	provided by Subsection (e) that the organization no longer
19	19	qualifies for an exemption [at the end of the fifth tax year after
20	20	the year in which the exemption is granted. To continue to receive
21	21	an exemption under this section after that year, the organization
22	22	must obtain a new determination letter and reapply for the
23	23	exemption].
24	24	(k-1) An organization receiving an exemption under this
25	25	section shall notify the comptroller and the chief appraiser of the
26	26	appraisal district established for the county in which the exempt
27	27	property is located of each of the following material changes not
28	28	later than the 30th day after the date the material change occurs:
29	29	(1) the organization sells or otherwise disposes of
30	30	the property that is subject to the exemption;
31	31	(2) the Internal Revenue Service determines that the
32	32	organization is no longer an exempt entity under Section 501(c)(3),
33	33	Internal Revenue Code of 1986; or
34	34	(3) the organization no longer qualifies for an
35	35	exemption under Section 151.310.
36	36	(k-2) Notwithstanding Subsection (k), an organization that
37	37	received an exemption granted under this section that expired
38	38	before September 1, 2023, is entitled to an automatic reinstatement
39	39	of the expired exemption under this section for each tax year
40	40	following the tax year in which the exemption expired if the
41	41	organization:
42	42	(1) still owns the property that was exempt from
43	43	taxation under this section;
44	44	(2) has a valid determination letter issued by the
45	45	comptroller under Subsection (f); and
46	46	(3) submits a written request to the chief appraiser
47	47	of the appraisal district established for the county in which the
48	48	exempt property is located that includes:
49	49	(A) proof that the organization was previously
50	50	granted an exemption under this section for the property that is the
51	51	subject of the request; and
52	52	(B) a copy of the determination letter issued by
53	53	the comptroller under Subsection (f).
54	54	(k-3) If an organization is entitled to continue to receive
55	55	an exemption under Subsection (k-2), the exemption remains in
56	56	effect until it expires as provided by Subsection (k).
57	57	(k-4) An organization that is entitled to continue to
58	58	receive an exemption under Subsection (k-2) does not owe any tax on
59	59	the exempt property for the period starting on the date the
60	60	exemption expired under Subsection (k) and ending on the date the
61	61	organization is entitled to continue to receive the exemption under
62	62	Subsection (k-2). If the organization paid taxes on the property
63	63	during that period, the collector shall refund to the organization
64	64	the amount of tax imposed on the property. The collector shall pay
65	65	the refund not later than the 30th day after the date the chief
66	66	appraiser notifies the collector of the approval of the continued
67	67	exemption under Subsection (k-2).
68	68	SECTION 2. Section 11.43(c), Tax Code, is amended to read as
69	69	follows:
70	70	(c) An exemption provided by Section 11.13, 11.131, 11.132,
71	71	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.184,
72	72	11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
73	73	11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, or
74	74	11.35, once allowed, need not be claimed in subsequent years, and
75	75	except as otherwise provided by Subsection (e), the exemption
76	76	applies to the property until it changes ownership or the person's
77	77	qualification for the exemption changes. However, except as
78	78	provided by Subsection (r), the chief appraiser may require a
79	79	person allowed one of the exemptions in a prior year to file a new
80	80	application to confirm the person's current qualification for the
81	81	exemption by delivering a written notice that a new application is
82	82	required, accompanied by an appropriate application form, to the
83	83	person previously allowed the exemption. If the person previously
84	84	allowed the exemption is 65 years of age or older, the chief
85	85	appraiser may not cancel the exemption due to the person's failure
86	86	to file the new application unless the chief appraiser complies
87	87	with the requirements of Subsection (q), if applicable.
88	88	SECTION 3. This Act takes effect January 1, 2024.