TX
Texas House Bill HB122

Texas 2025 - 89th 1st C.S.

Texas House Bill HB122

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the exemption from ad valorem taxation of property owned by certain nonprofit corporations, located in a populous county, and used to promote agriculture, support youth, and provide educational support in the community.

Impact

If enacted, this legislation will exempt all real and personal property owned by qualified nonprofit organizations from ad valorem taxation, thus encouraging these organizations to invest more in their respective communities without the hindrance of property taxes. The measure underscores a policy shift towards fostering community engagement and development through tax incentives. However, it applies only to properties that meet the specified criteria, thus setting a clear threshold for eligibility.

Summary

House Bill 122 seeks to amend the Texas Tax Code to provide an exemption from ad valorem taxation for properties owned by certain nonprofit corporations. This exemption applies specifically to organizations that are dedicated to promoting agriculture, supporting youth, and providing educational resources within populous counties, defined as those with a population of 3.3 million or more. The aim of the bill is to alleviate the financial burden on nonprofit entities that contribute significantly to community development and welfare.

Contention

The bill acknowledges that while it aims to support vital community services and promote agricultural initiatives, there are concerns about the implications of such tax exemptions on local revenue. Critics may argue that by exempting nonprofit properties from taxation, local governments could face financial shortfalls, potentially affecting their ability to provide essential services. Furthermore, discussions may arise regarding the criteria used to classify organizations as nonprofits and the potential for abuse of these tax exemptions by entities that do not directly serve community interests.

Texas Constitutional Statutes Affected

Tax Code

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

Business Organizations Code

  • Chapter 22. Nonprofit Corporations
    • Section: New Section

Companion Bills

No companion bills found.

Previously Filed As

TX HB4580

Relating to the exemption from ad valorem taxation of property owned by certain nonprofit corporations and used to promote agriculture, support youth, and provide educational support in the community.

TX SB2973

Relating to the exemption from ad valorem taxation of property owned by certain nonprofit corporations and used to promote agriculture, support youth, and provide educational support in the community.

TX HB4240

Relating to the exemption from ad valorem taxation of property of a charitable organization that provides financial support for medical care at certain institutions of higher education.

TX SB2170

Relating to the exemption from ad valorem taxation of property of a charitable organization that provides financial support for medical care at certain institutions of higher education.

TX HB4650

Relating to the exemption from ad valorem taxation of property owned by a community land trust or housing finance corporation.

TX HB741

Relating to an exemption from ad valorem taxation of property owned by a charitable organization and used to provide child-care services.

TX SB2352

Relating to the exemption from ad valorem taxation of property owned by a charitable organization that provides a meeting place and support services for organizations that provide assistance to persons with substance use disorders and their families.

TX HB581

Relating to an exemption from ad valorem taxation of real property owned by a charitable organization for the purpose of renting the property at below-market rates to low-income and moderate-income households.

TX SB2398

Relating to an exemption from ad valorem taxation of real property owned by a charitable organization for the purpose of renting the property at below-market rates to low-income and moderate-income households.

TX HB3691

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.

Similar Bills

No similar bills found.