Texas 2023 - 88th Regular

Texas House Bill HB581 Compare Versions

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Version 2 (New)

Old	New	Differences
1	1	88R2658 RDS-D
2	2	By: Raymond H.B. No. 581
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exemption from ad valorem taxation of real property
8	8	owned by a charitable organization for the purpose of renting the
9	9	property at below-market rates to low-income and moderate-income
10	10	households.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 11.18, Tax Code, is amended by amending
13	13	Subsection (d) and adding Subsection (r) to read as 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 without regard to the residents' ability to
62	62	pay;
63	63	(14) promoting or operating an art gallery, museum, or
64	64	collection, in a permanent location or on tour, that is open to the
65	65	public;
66	66	(15) providing for the organized solicitation and
67	67	collection for distributions through gifts, grants, and agreements
68	68	to nonprofit charitable, education, religious, and youth
69	69	organizations that provide direct human, health, and welfare
70	70	services;
71	71	(16) performing biomedical or scientific research or
72	72	biomedical or scientific education for the benefit of the public;
73	73	(17) operating a television station that produces or
74	74	broadcasts educational, cultural, or other public interest
75	75	programming and that receives grants from the Corporation for
76	76	Public Broadcasting under 47 U.S.C. Section 396, as amended;
77	77	(18) providing housing for low-income and
78	78	moderate-income families, for unmarried individuals 62 years of age
79	79	or older, for [handicapped] individuals with disabilities, and for
80	80	families displaced by urban renewal, through the use of trust
81	81	assets that are irrevocably and, pursuant to a contract entered
82	82	into before December 31, 1972, contractually dedicated on the sale
83	83	or disposition of the housing to a charitable organization that
84	84	performs charitable functions described by Subdivision (9);
85	85	(19) providing housing and related services to persons
86	86	who are 62 years of age or older in a retirement community, if the
87	87	retirement community provides independent living services,
88	88	assisted living services, and nursing services to its residents on
89	89	a single campus:
90	90	(A) without regard to the residents' ability to
91	91	pay; or
92	92	(B) in which at least four percent of the
93	93	retirement community's combined net resident revenue is provided in
94	94	charitable care to its residents;
95	95	(20) providing housing on a cooperative basis to
96	96	students of an institution of higher education if:
97	97	(A) the organization is exempt from federal
98	98	income taxation under Section 501(a), Internal Revenue Code of
99	99	1986, as amended, by being listed as an exempt entity under Section
100	100	501(c)(3) of that code;
101	101	(B) membership in the organization is open to all
102	102	students enrolled in the institution and is not limited to those
103	103	chosen by current members of the organization;
104	104	(C) the organization is governed by its members;
105	105	and
106	106	(D) the members of the organization share the
107	107	responsibility for managing the housing;
108	108	(21) acquiring, holding, and transferring unimproved
109	109	real property under an urban land bank demonstration program
110	110	established under Chapter 379C, Local Government Code, as or on
111	111	behalf of a land bank;
112	112	(22) acquiring, holding, and transferring unimproved
113	113	real property under an urban land bank program established under
114	114	Chapter 379E, Local Government Code, as or on behalf of a land bank;
115	115	(23) providing housing and related services to
116	116	individuals who:
117	117	(A) are unaccompanied and homeless and have a
118	118	disabling condition; and
119	119	(B) have been continuously homeless for a year or
120	120	more or have had at least four episodes of homelessness in the
121	121	preceding three years;
122	122	(24) operating a radio station that broadcasts
123	123	educational, cultural, or other public interest programming,
124	124	including classical music, and that in the preceding five years has
125	125	received or been selected to receive one or more grants from the
126	126	Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
127	127	amended; [or]
128	128	(25) providing, without regard to the beneficiaries'
129	129	ability to pay, tax return preparation services and assistance with
130	130	other financial matters; or
131	131	(26) providing:
132	132	(A) services as a HUD-approved housing
133	133	counseling agency, as defined by 24 C.F.R. Section 214.3, without
134	134	regard to the beneficiaries' ability to pay; and
135	135	(B) rental housing to low-income and
136	136	moderate-income households at below-market rates.
137	137	(r) The exemption authorized by Subsection (d)(26) applies
138	138	only to property that is:
139	139	(1) used to provide rental housing to low-income and
140	140	moderate-income households at below-market rates; and
141	141	(2) located in a municipality with a population of
142	142	200,000 or more that is located in a county on the Texas-Mexico
143	143	border that has a population of less than 300,000.
144	144	SECTION 2. This Act applies only to an ad valorem tax year
145	145	that begins on or after the effective date of this Act.
146	146	SECTION 3. This Act takes effect January 1, 2024.