By: Harless H.B. No. 4580
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of property of a
charitable organization that provides financial support for
promoting agriculture, supporting Texas youth and providing
educational support.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 11, Tax Code, is amended by
adding Section 11.186 to read as follows:
Sec. 11.186. ORGANIZATIONS PROMOTING AGRICULTURE,
SUPPORTING TEXAS YOUTH, AND PROVIDING EDUCATIONAL SUPPORT. In a
county with a population of more than 3.3 million, all real and
personal property owned by a nonprofit corporation, as defined by
Section 22.001, Business Organizations Code, organized exclusively
for charitable, educational and scientific purposes, and held for
use in promoting agriculture, supporting Texas youth and providing
educational support within the community is exempt from all ad
valorem taxation. Use of property exempted by this section for
purposes other than those listed herein does not result in loss of
the exemption if ensuing and incidental revenues are used in
support of the nonprofit's charitable purposes. This section shall
not exempt from taxation any interest in real or personal property,
including a leasehold or other possessory interest, of a for-profit
lessee of property for which a nonprofit corporation is entitled to
an exemption from taxation under this section.
SECTION 2. Section 11.43(c), Tax Code, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.186,
11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35,
or 11.36, once allowed, need not be claimed in subsequent years, and
except as otherwise provided by Subsection (e), the exemption
applies to the property until it changes ownership or the person's
qualification for the exemption changes. However, except as
provided by Subsection (r), the chief appraiser may require a
person allowed one of the exemptions in a prior year to file a new
application to confirm the person's current qualification for the
exemption by delivering a written notice that a new application is
required, accompanied by an appropriate application form, to the
person previously allowed the exemption. If the person previously
allowed the exemption is 65 years of age or older, the chief
appraiser may not cancel the exemption due to the person's failure
to file the new application unless the chief appraiser complies
with the requirements of Subsection (q), if applicable.
SECTION 3. This Act takes effect January 1, 2026.