| 1 | 1 | | By: Parker S.B. No. 2361 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the exemption from ad valorem taxation of property |
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| 7 | 7 | | owned by an organization engaged primarily in performing charitable |
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| 8 | 8 | | functions. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 11.184, Tax Code, is amended by amending |
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| 11 | 11 | | Subsection (k) and adding Subsections (k-1), (k-2), (k-3), and |
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| 12 | 12 | | (k-4) to read as follows: |
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| 13 | 13 | | (k) An exemption under this section expires when: |
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| 14 | 14 | | (1) the organization no longer owns the property |
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| 15 | 15 | | described by Subsection (c); or |
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| 16 | 16 | | (2) the comptroller determines based on the factors |
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| 17 | 17 | | provided by Subsection (e) that the organization no longer |
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| 18 | 18 | | qualifies for an exemption [at the end of the fifth tax year after |
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| 19 | 19 | | the year in which the exemption is granted. To continue to receive |
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| 20 | 20 | | an exemption under this section after that year, the organization |
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| 21 | 21 | | must obtain a new determination letter and reapply for the |
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| 22 | 22 | | exemption]. |
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| 23 | 23 | | (k-1) An organization receiving an exemption under this |
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| 24 | 24 | | section shall notify the comptroller and the chief appraiser of the |
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| 25 | 25 | | appraisal district established for the county in which the exempt |
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| 26 | 26 | | property is located of each of the following material changes not |
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| 27 | 27 | | later than the 30th day after the date the material change occurs: |
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| 28 | 28 | | (1) the organization sells or otherwise disposes of |
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| 29 | 29 | | the property that is subject to the exemption; |
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| 30 | 30 | | (2) the Internal Revenue Service determines that the |
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| 31 | 31 | | organization is no longer an exempt entity under Section 501(c)(3), |
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| 32 | 32 | | Internal Revenue Code of 1986; or |
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| 33 | 33 | | (3) the organization no longer qualifies for an |
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| 34 | 34 | | exemption under Section 151.310. |
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| 35 | 35 | | (k-2) Notwithstanding Subsection (k), an organization that |
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| 36 | 36 | | received an exemption granted under this section that expired |
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| 37 | 37 | | before September 1, 2023, is entitled to an automatic reinstatement |
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| 38 | 38 | | of the expired exemption under this section for each tax year |
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| 39 | 39 | | following the tax year in which the exemption expired if the |
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| 40 | 40 | | organization: |
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| 41 | 41 | | (1) still owns the property that was exempt from |
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| 42 | 42 | | taxation under this section; |
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| 43 | 43 | | (2) has a valid determination letter issued by the |
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| 44 | 44 | | comptroller under Subsection (f); and |
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| 45 | 45 | | (3) submits a written request to the chief appraiser |
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| 46 | 46 | | of the appraisal district established for the county in which the |
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| 47 | 47 | | exempt property is located that includes: |
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| 48 | 48 | | (A) proof that the organization was previously |
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| 49 | 49 | | granted an exemption under this section for the property that is the |
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| 50 | 50 | | subject of the request; and |
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| 51 | 51 | | (B) a copy of the determination letter issued by |
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| 52 | 52 | | the comptroller under Subsection (f). |
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| 53 | 53 | | (k-3) If an organization is entitled to continue to receive |
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| 54 | 54 | | an exemption under Subsection (k-2), the exemption remains in |
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| 55 | 55 | | effect until it expires as provided by Subsection (k). |
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| 56 | 56 | | (k-4) An organization that is entitled to continue to |
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| 57 | 57 | | receive an exemption under Subsection (k-2) does not owe any tax on |
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| 58 | 58 | | the exempt property for the period starting on the date the |
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| 59 | 59 | | exemption expired under Subsection (k) and ending on the date the |
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| 60 | 60 | | organization is entitled to continue to receive the exemption under |
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| 61 | 61 | | Subsection (k-2). If the organization paid taxes on the property |
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| 62 | 62 | | during that period, the collector shall refund to the organization |
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| 63 | 63 | | the amount of tax imposed on the property. The collector shall pay |
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| 64 | 64 | | the refund not later than the 30th day after the date the chief |
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| 65 | 65 | | appraiser notifies the collector of the approval of the continued |
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| 66 | 66 | | exemption under Subsection (k-2). |
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| 67 | 67 | | SECTION 2. Section 11.43(c), Tax Code, is amended to read as |
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| 68 | 68 | | follows: |
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| 69 | 69 | | (c) An exemption provided by Section 11.13, 11.131, 11.132, |
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| 70 | 70 | | 11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.184, |
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| 71 | 71 | | 11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), |
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| 72 | 72 | | 11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, or |
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| 73 | 73 | | 11.35, once allowed, need not be claimed in subsequent years, and |
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| 74 | 74 | | except as otherwise provided by Subsection (e), the exemption |
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| 75 | 75 | | applies to the property until it changes ownership or the person's |
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| 76 | 76 | | qualification for the exemption changes. However, except as |
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| 77 | 77 | | provided by Subsection (r), the chief appraiser may require a |
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| 78 | 78 | | person allowed one of the exemptions in a prior year to file a new |
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| 79 | 79 | | application to confirm the person's current qualification for the |
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| 80 | 80 | | exemption by delivering a written notice that a new application is |
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| 81 | 81 | | required, accompanied by an appropriate application form, to the |
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| 82 | 82 | | person previously allowed the exemption. If the person previously |
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| 83 | 83 | | allowed the exemption is 65 years of age or older, the chief |
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| 84 | 84 | | appraiser may not cancel the exemption due to the person's failure |
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| 85 | 85 | | to file the new application unless the chief appraiser complies |
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| 86 | 86 | | with the requirements of Subsection (q), if applicable. |
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| 87 | 87 | | SECTION 3. This Act takes effect January 1, 2024. |
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