Texas 2025 - 89th Regular

Texas House Bill HB2525 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		89R3489 RDS-F
2	2		By: Darby H.B. No. 2525
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5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the exemption from ad valorem taxation of certain
8	10		property owned by a charitable organization that is engaged in
9	11		providing housing and related facilities and services to persons
10	12		who are at least 62 years of age.
11	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	14		SECTION 1. Section 11.18(d), Tax Code, is amended to read as
13	15		follows:
14	16		(d) A charitable organization must be organized exclusively
15	17		to perform religious, charitable, scientific, literary, or
16	18		educational purposes and, except as permitted by Subsections (h)
17	19		and (l), engage exclusively in performing one or more of the
18	20		following charitable functions:
19	21		(1) providing medical care without regard to the
20	22		beneficiaries' ability to pay, which in the case of a nonprofit
21	23		hospital or hospital system means providing charity care and
22	24		community benefits in accordance with Section 11.1801;
23	25		(2) providing support or relief to orphans, delinquent
24	26		or dependent children in need of residential care, children with
25	27		disabilities in need of residential care, abused or battered
26	28		spouses or children in need of temporary shelter, the impoverished,
27	29		or victims of natural disaster without regard to the beneficiaries'
28	30		ability to pay;
29	31		(3) providing support without regard to the
30	32		beneficiaries' ability to pay to:
31	33		(A) elderly persons, including the provision of:
32	34		(i) recreational or social activities; and
33	35		(ii) facilities designed to address the
34	36		special needs of elderly persons; or
35	37		(B) persons with disabilities, including
36	38		training and employment:
37	39		(i) in the production of commodities; or
38	40		(ii) in the provision of services under 41
39	41		U.S.C. Sections 8501-8506;
40	42		(4) preserving a historical landmark or site;
41	43		(5) promoting or operating a museum, zoo, library,
42	44		theater of the dramatic or performing arts, or symphony orchestra
43	45		or choir;
44	46		(6) promoting or providing humane treatment of
45	47		animals;
46	48		(7) acquiring, storing, transporting, selling, or
47	49		distributing water for public use;
48	50		(8) answering fire alarms and extinguishing fires with
49	51		no compensation or only nominal compensation to the members of the
50	52		organization;
51	53		(9) promoting the athletic development of boys or
52	54		girls under the age of 18 years;
53	55		(10) preserving or conserving wildlife;
54	56		(11) promoting educational development through loans
55	57		or scholarships to students;
56	58		(12) providing halfway house services pursuant to a
57	59		certification as a halfway house by the parole division of the Texas
58	60		Department of Criminal Justice;
59	61		(13) providing permanent housing and related social,
60	62		health care, and educational facilities for persons who are 62
61	63		years of age or older:
62	64		(A) without regard to the residents' ability to
63	65		pay; or
64	66		(B) as an organization that provides charitable
65	67		housing and services in an amount that is not less than four percent
66	68		of the charitable organization's net resident revenue;
67	69		(14) promoting or operating an art gallery, museum, or
68	70		collection, in a permanent location or on tour, that is open to the
69	71		public;
70	72		(15) providing for the organized solicitation and
71	73		collection for distributions through gifts, grants, and agreements
72	74		to nonprofit charitable, education, religious, and youth
73	75		organizations that provide direct human, health, and welfare
74	76		services;
75	77		(16) performing biomedical or scientific research or
76	78		biomedical or scientific education for the benefit of the public;
77	79		(17) operating a television station that produces or
78	80		broadcasts educational, cultural, or other public interest
79	81		programming and that receives grants from the Corporation for
80	82		Public Broadcasting under 47 U.S.C. Section 396, as amended;
81	83		(18) providing housing for low-income and
82	84		moderate-income families, for unmarried individuals 62 years of age
83	85		or older, for individuals with disabilities, and for families
84	86		displaced by urban renewal, through the use of trust assets that are
85	87		irrevocably and, pursuant to a contract entered into before
86	88		December 31, 1972, contractually dedicated on the sale or
87	89		disposition of the housing to a charitable organization that
88	90		performs charitable functions described by Subdivision (9);
89	91		(19) providing housing and related services to persons
90	92		who are 62 years of age or older in a retirement community, if the
91	93		retirement community provides independent living services,
92	94		assisted living services, and nursing services to its residents on
93	95		a single campus:
94	96		(A) without regard to the residents' ability to
95	97		pay; or
96	98		(B) as an organization that provides charitable
97	99		housing and services in an amount that is not less than four percent
98	100		of the charitable organization's net resident revenue [in which at
99	101		least four percent of the retirement community's combined net
100	102		resident revenue is provided in charitable care to its residents];
101	103		(20) providing housing on a cooperative basis to
102	104		students of an institution of higher education if:
103	105		(A) the organization is exempt from federal
104	106		income taxation under Section 501(a), Internal Revenue Code of
105	107		1986, as amended, by being listed as an exempt entity under Section
106	108		501(c)(3) of that code;
107	109		(B) membership in the organization is open to all
108	110		students enrolled in the institution and is not limited to those
109	111		chosen by current members of the organization;
110	112		(C) the organization is governed by its members;
111	113		and
112	114		(D) the members of the organization share the
113	115		responsibility for managing the housing;
114	116		(21) acquiring, holding, and transferring unimproved
115	117		real property under an urban land bank demonstration program
116	118		established under Chapter 379C, Local Government Code, as or on
117	119		behalf of a land bank;
118	120		(22) acquiring, holding, and transferring unimproved
119	121		real property under an urban land bank program established under
120	122		Chapter 379E, Local Government Code, as or on behalf of a land bank;
121	123		(23) providing housing and related services to
122	124		individuals who:
123	125		(A) are unaccompanied and homeless and have a
124	126		disabling condition; and
125	127		(B) have been continuously homeless for a year or
126	128		more or have had at least four episodes of homelessness in the
127	129		preceding three years;
128	130		(24) operating a radio station that broadcasts
129	131		educational, cultural, or other public interest programming,
130	132		including classical music, and that in the preceding five years has
131	133		received or been selected to receive one or more grants from the
132	134		Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
133	135		amended;
134	136		(25) providing, without regard to the beneficiaries'
135	137		ability to pay, tax return preparation services and assistance with
136	138		other financial matters; or
137	139		(26) providing services related to planning for the
138	140		placement of or placing children in foster or adoptive homes or
139	141		providing support or relief to women who are or may be pregnant and
140	142		who are considering placing their unborn children for adoption.
141	143		SECTION 2. Section 11.18(k), Tax Code, is amended by adding
142	144		Subdivision (1-a) and amending Subdivision (2) to read as follows:
143	145		(1-a) "Charitable housing and services" means the
144	146		following provided by a charitable organization to a person 62
145	147		years of age or older in financial need:
146	148		(A) housing, including as an independent living
147	149		facility, assisted living facility, or nursing facility; and
148	150		(B) any service designed to meet the unique needs
149	151		of a person 62 years of age or older, including:
150	152		(i) ministerial services;
151	153		(ii) government-sponsored indigent health
152	154		care;
153	155		(iii) social services;
154	156		(iv) health services;
155	157		(v) educational services; and
156	158		(vi) donations to an organization that
157	159		qualifies for an exemption under Subsection (d)(13) or (19).
158	160		(2) "Charity care," "government-sponsored indigent
159	161		health care," and "net resident revenue" are determined in the same
160	162		manner for a retirement community or nursing home as "charity
161	163		care," "government-sponsored indigent health care," and "net
162	164		patient revenue," respectively, are determined for a hospital under
163	165		Section 11.1801(a)(2).
164	166		SECTION 3. The changes in law made by this Act apply only to
165	167		an ad valorem tax year that begins on or after the effective date of
166	168		this Act.
167	169		SECTION 4. This Act takes effect January 1, 2026.