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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to the exemption from ad valorem taxation of property of a |
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| 7 | 9 | | charitable organization that provides financial support for |
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| 8 | 10 | | promoting agriculture, supporting Texas youth and providing |
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| 9 | 11 | | educational support. |
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| 10 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 13 | | SECTION 1. Subchapter A, Chapter 11, Tax Code, is amended by |
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| 12 | 14 | | adding Section 11.186 to read as follows: |
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| 13 | 15 | | Sec. 11.186. ORGANIZATIONS PROMOTING AGRICULTURE, |
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| 14 | 16 | | SUPPORTING TEXAS YOUTH, AND PROVIDING EDUCATIONAL SUPPORT. In a |
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| 15 | 17 | | county with a population of more than 3.3 million, all real and |
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| 16 | 18 | | personal property owned by a nonprofit corporation, as defined by |
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| 17 | 19 | | Section 22.001, Business Organizations Code, organized exclusively |
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| 18 | 20 | | for charitable, educational and scientific purposes, and held for |
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| 19 | 21 | | use in promoting agriculture, supporting Texas youth and providing |
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| 20 | 22 | | educational support within the community is exempt from all ad |
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| 21 | 23 | | valorem taxation. Use of property exempted by this section for |
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| 22 | 24 | | purposes other than those listed herein does not result in loss of |
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| 23 | 25 | | the exemption if ensuing and incidental revenues are used in |
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| 24 | 26 | | support of the nonprofit's charitable purposes. This section shall |
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| 25 | 27 | | not exempt from taxation any interest in real or personal property, |
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| 26 | 28 | | including a leasehold or other possessory interest, of a for-profit |
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| 27 | 29 | | lessee of property for which a nonprofit corporation is entitled to |
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| 28 | 30 | | an exemption from taxation under this section. |
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| 29 | 31 | | SECTION 2. Section 11.43(c), Tax Code, is amended to read as |
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| 30 | 32 | | follows: |
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| 31 | 33 | | (c) An exemption provided by Section 11.13, 11.131, 11.132, |
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| 32 | 34 | | 11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.186, |
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| 33 | 35 | | 11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), |
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| 34 | 36 | | 11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, |
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| 35 | 37 | | or 11.36, once allowed, need not be claimed in subsequent years, and |
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| 36 | 38 | | except as otherwise provided by Subsection (e), the exemption |
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| 37 | 39 | | applies to the property until it changes ownership or the person's |
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| 38 | 40 | | qualification for the exemption changes. However, except as |
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| 39 | 41 | | provided by Subsection (r), the chief appraiser may require a |
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| 40 | 42 | | person allowed one of the exemptions in a prior year to file a new |
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| 41 | 43 | | application to confirm the person's current qualification for the |
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| 42 | 44 | | exemption by delivering a written notice that a new application is |
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| 43 | 45 | | required, accompanied by an appropriate application form, to the |
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| 44 | 46 | | person previously allowed the exemption. If the person previously |
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| 45 | 47 | | allowed the exemption is 65 years of age or older, the chief |
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| 46 | 48 | | appraiser may not cancel the exemption due to the person's failure |
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| 47 | 49 | | to file the new application unless the chief appraiser complies |
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| 48 | 50 | | with the requirements of Subsection (q), if applicable. |
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| 49 | 51 | | SECTION 3. This Act takes effect January 1, 2026. |
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