| 1 | 1 | | 88R3245 LHC-D |
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| 2 | 2 | | By: King S.B. No. 834 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an exemption from ad valorem taxation of certain |
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| 8 | 8 | | royalty interests owned by a charitable organization. |
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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 11.18(a), Tax Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | (a) An organization that qualifies as a charitable |
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| 13 | 13 | | organization as provided by this section is entitled to an |
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| 14 | 14 | | exemption from taxation of: |
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| 15 | 15 | | (1) the buildings and tangible personal property that: |
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| 16 | 16 | | (A) are owned by the charitable organization; and |
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| 17 | 17 | | (B) except as permitted by Subsection (b), are |
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| 18 | 18 | | used exclusively by qualified charitable organizations; [and] |
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| 19 | 19 | | (2) the real property owned by the charitable |
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| 20 | 20 | | organization consisting of: |
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| 21 | 21 | | (A) an incomplete improvement that: |
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| 22 | 22 | | (i) is under active construction or other |
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| 23 | 23 | | physical preparation; and |
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| 24 | 24 | | (ii) is designed and intended to be used |
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| 25 | 25 | | exclusively by qualified charitable organizations; and |
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| 26 | 26 | | (B) the land on which the incomplete improvement |
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| 27 | 27 | | is located that will be reasonably necessary for the use of the |
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| 28 | 28 | | improvement by qualified charitable organizations; and |
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| 29 | 29 | | (3) a royalty interest, as defined by Section 201.001, |
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| 30 | 30 | | owned by the organization. |
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| 31 | 31 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 32 | 32 | | for a tax year beginning on or after the effective date of this Act. |
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| 33 | 33 | | SECTION 3. This Act takes effect January 1, 2024. |
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