| 1 | 1 | | By: Guillen H.B. No. 3438 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the property tax exemption for certain nonprofit |
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| 9 | 9 | | community business organizations. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subsection (a), Section 11.231, Tax Code, is |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | (a) In this section, "nonprofit community business |
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| 14 | 14 | | organization" means an organization that meets the following |
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| 15 | 15 | | requirements: |
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| 16 | 16 | | (1) the organization has been in existence for at |
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| 17 | 17 | | least the preceding five years; |
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| 18 | 18 | | (2) the organization: |
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| 19 | 19 | | (A) is a nonprofit corporation organized under |
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| 20 | 20 | | the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., |
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| 21 | 21 | | Vernon's Texas Civil Statutes) or a nonprofit corporation formed |
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| 22 | 22 | | under the Texas Nonprofit Corporation Law, as described by Section |
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| 23 | 23 | | 1.008, Business Organizations Code; |
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| 24 | 24 | | (B) is a nonprofit organization described by |
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| 25 | 25 | | Section 501(c)(6), Internal Revenue Code of 1986; and |
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| 26 | 26 | | (C) is not a statewide organization; |
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| 27 | 27 | | (3) for at least the preceding three years, the |
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| 28 | 28 | | organization has maintained a dues-paying membership of at least 50 |
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| 29 | 29 | | members; and |
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| 30 | 30 | | (4) the organization: |
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| 31 | 31 | | (A) has a board of directors elected by the |
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| 32 | 32 | | members; |
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| 33 | 33 | | (B) does not compensate members of the board of |
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| 34 | 34 | | directors for service on the board; |
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| 35 | 35 | | (C) with respect to its activities in this state, |
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| 36 | 36 | | is engaged primarily in performing functions listed in Subsection |
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| 37 | 37 | | (d); |
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| 38 | 38 | | (D) is primarily supported by membership dues and |
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| 39 | 39 | | other income from activities substantially related to its primary |
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| 40 | 40 | | functions; and |
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| 41 | 41 | | (E) is not,and has not formed[, and does not |
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| 42 | 42 | | financially support] a political committee as defined by Section |
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| 43 | 43 | | 251.001, Election Code. |
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| 44 | 44 | | SECTION 2. This Act applies only to an ad valorem tax year |
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| 45 | 45 | | that begins on or after the effective date of this Act. |
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| 46 | 46 | | SECTION 3. This Act takes effect January 1, 2026. |
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