By: Landgraf H.B. No. 4752
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of a charitable organization for an
exemption from ad valorem taxation of the organization's property
if the organization provides for the organized solicitation and
collection for distributions through gifts, grants, and agreements
to nonprofit charitable, education, religious, and youth
organizations that provide direct human, health, and welfare
services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.18(g), Tax Code, is amended to read as
follows:
(g) A charitable organization that performs a charitable
function specified by Subsection (d)(15) must:
(1) [be affiliated with a state or national
organization that authorizes, approves, or sanctions volunteer
charitable fundraising organizations;
[(2)] qualify for exemption under Section 501(c)(3),
Internal Revenue Code of 1986, as amended;
(2) [(3)] be governed by a volunteer board of
directors; and
(3) [(4)] distribute contributions to at least five
other associations to be used for general charitable purposes, with
all recipients meeting the following criteria:
(A) be governed by a volunteer board of
directors;
(B) qualify for exemption from federal income tax
under Section 501(c)(3), Internal Revenue Code of 1986, as amended,
or be a public institution of higher education;
(C) receive a majority of annual revenue from
private or corporate charitable gifts and government agencies; and
(D) provide services without regard to the
ability of persons receiving the services to pay for the services.
SECTION 2. The change in law made by this Act applies only
to an ad valorem tax year that begins on or after the effective date
of this Act.
SECTION 3. This Act takes effect January 1, 2026.