LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION May 4, 2025 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5478 by Kerwin (Relating to the exemption from ad valorem taxation of property owned by an organization engaged primarily in performing charitable functions.), As Introduced No significant fiscal implication to the State is anticipated. This bill would change the expiration date of an exemption for an organization engaged primarily in performing charitable functions from the fifth tax year after the exemption is originally claimed to the date on which the organization no longer owns the property or the comptroller determines that the organization no longer qualifies for the exemption. The bill would require an organization to notify the Comptroller and the chief appraiser within 30 days after a material change in ownership of the property or qualification as an exempt entity occurs.The bill would entitle an organization that received a property tax exemption that expired before September 1, 2023 to automatic reinstatement of the exemption for each tax year following the tax year the exemption expired if the organization still owns the property, has a valid determination letter issued by the Comptroller, and submits a written request to the chief appraiser with proof the organization was previously granted an exemption and a copy of the determination letter issued by the Comptroller. The collector would be required to provide a refund of any taxes paid by the organization within 30 days of the approval of the continuation of the exemption.The bill would revise when an organization's property tax exemption expires and provides for reinstatement under certain circumstances. It is not known how often an organization's tax exemption might expire in the future and it is unknown how many organizations may be eligible for reinstatement and tax refund. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
May 4, 2025
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5478 by Kerwin (Relating to the exemption from ad valorem taxation of property owned by an organization engaged primarily in performing charitable functions.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5478 by Kerwin (Relating to the exemption from ad valorem taxation of property owned by an organization engaged primarily in performing charitable functions.), As Introduced
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB5478 by Kerwin (Relating to the exemption from ad valorem taxation of property owned by an organization engaged primarily in performing charitable functions.), As Introduced
HB5478 by Kerwin (Relating to the exemption from ad valorem taxation of property owned by an organization engaged primarily in performing charitable functions.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
This bill would change the expiration date of an exemption for an organization engaged primarily in performing charitable functions from the fifth tax year after the exemption is originally claimed to the date on which the organization no longer owns the property or the comptroller determines that the organization no longer qualifies for the exemption. The bill would require an organization to notify the Comptroller and the chief appraiser within 30 days after a material change in ownership of the property or qualification as an exempt entity occurs.The bill would entitle an organization that received a property tax exemption that expired before September 1, 2023 to automatic reinstatement of the exemption for each tax year following the tax year the exemption expired if the organization still owns the property, has a valid determination letter issued by the Comptroller, and submits a written request to the chief appraiser with proof the organization was previously granted an exemption and a copy of the determination letter issued by the Comptroller. The collector would be required to provide a refund of any taxes paid by the organization within 30 days of the approval of the continuation of the exemption.The bill would revise when an organization's property tax exemption expires and provides for reinstatement under certain circumstances. It is not known how often an organization's tax exemption might expire in the future and it is unknown how many organizations may be eligible for reinstatement and tax refund.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD, BRI
JMc, KK, SD, BRI