Texas Senate Bill SB1255

Texas 2023 - 88th Regular

• Filed: 2/27/23

Caption

Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.

Impact

The enactment of SB1255 is expected to directly impact the Texas Tax Code, specifically Section 11.18, by amending it to include provisions that delineate the eligibility criteria for charitable organizations claiming the tax exemption. The bill establishes requirements that such organizations must meet, including providing certain levels of charitable care and services to low-income seniors. This change in the law would potentially reduce the financial strain on these organizations, allowing them more resources to invest in their services and facilities, thereby benefiting the community served.

Summary

SB1255 is a legislative proposal aimed at providing an exemption from ad valorem taxation for certain properties owned by charitable organizations. Specifically, this bill targets properties that are engaged in providing housing and related services to individuals who are 62 years of age or older. By allowing these organizations to exclude their properties from property taxes, the bill seeks to alleviate some of the financial burdens on charitable entities that focus on serving the elderly population in Texas. The intention behind this legislation is to support charitable organizations that assist senior citizens, thereby enhancing the availability of affordable housing options for this demographic.

Sentiment

The sentiment surrounding SB1255 appears to be predominantly positive among its proponents. Supporters argue that the bill represents a crucial step toward supporting charitable organizations that play an essential role in addressing the needs of vulnerable populations, particularly the elderly. Advocates suggest that by easing the tax burden, these organizations will be better positioned to provide necessary housing and services. However, the discussions may also bring forth some concerns, particularly regarding the financial implications for local governments who rely on property taxes for funding essential services.

Contention

Notable points of contention regarding SB1255 may arise around the potential loss of revenue for local entities. Critics of similar tax exemptions often express concern that reducing the tax base could adversely affect local services and infrastructure, particularly in communities with shrinking resources. Moreover, fundamental questions might surface regarding the burdens placed on charitable organizations to meet the outlined requirements in order to qualify for the exemption, potentially complicating their operational capacity. Thus, while SB1255 aims to benefit charitable organizations, it also opens up a dialogue on the balance between supporting nonprofits and ensuring that local governments maintain sufficient funding.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section