Texas 2025 - 89th Regular

Texas Senate Bill SB1237 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R3489 RDS-F
2	2	By: Paxton S.B. No. 1237
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the exemption from ad valorem taxation of certain
10	10	property owned by a charitable organization that is engaged in
11	11	providing housing and related facilities and services to persons
12	12	who are at least 62 years of age.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 11.18(d), Tax Code, is amended to read as
15	15	follows:
16	16	(d) A charitable organization must be organized exclusively
17	17	to perform religious, charitable, scientific, literary, or
18	18	educational purposes and, except as permitted by Subsections (h)
19	19	and (l), engage exclusively in performing one or more of the
20	20	following charitable functions:
21	21	(1) providing medical care without regard to the
22	22	beneficiaries' ability to pay, which in the case of a nonprofit
23	23	hospital or hospital system means providing charity care and
24	24	community benefits in accordance with Section 11.1801;
25	25	(2) providing support or relief to orphans, delinquent
26	26	or dependent children in need of residential care, children with
27	27	disabilities in need of residential care, abused or battered
28	28	spouses or children in need of temporary shelter, the impoverished,
29	29	or victims of natural disaster without regard to the beneficiaries'
30	30	ability to pay;
31	31	(3) providing support without regard to the
32	32	beneficiaries' ability to pay to:
33	33	(A) elderly persons, including the provision of:
34	34	(i) recreational or social activities; and
35	35	(ii) facilities designed to address the
36	36	special needs of elderly persons; or
37	37	(B) persons with disabilities, including
38	38	training and employment:
39	39	(i) in the production of commodities; or
40	40	(ii) in the provision of services under 41
41	41	U.S.C. Sections 8501-8506;
42	42	(4) preserving a historical landmark or site;
43	43	(5) promoting or operating a museum, zoo, library,
44	44	theater of the dramatic or performing arts, or symphony orchestra
45	45	or choir;
46	46	(6) promoting or providing humane treatment of
47	47	animals;
48	48	(7) acquiring, storing, transporting, selling, or
49	49	distributing water for public use;
50	50	(8) answering fire alarms and extinguishing fires with
51	51	no compensation or only nominal compensation to the members of the
52	52	organization;
53	53	(9) promoting the athletic development of boys or
54	54	girls under the age of 18 years;
55	55	(10) preserving or conserving wildlife;
56	56	(11) promoting educational development through loans
57	57	or scholarships to students;
58	58	(12) providing halfway house services pursuant to a
59	59	certification as a halfway house by the parole division of the Texas
60	60	Department of Criminal Justice;
61	61	(13) providing permanent housing and related social,
62	62	health care, and educational facilities for persons who are 62
63	63	years of age or older:
64	64	(A) without regard to the residents' ability to
65	65	pay; or
66	66	(B) as an organization that provides charitable
67	67	housing and services in an amount that is not less than four percent
68	68	of the charitable organization's net resident revenue;
69	69	(14) promoting or operating an art gallery, museum, or
70	70	collection, in a permanent location or on tour, that is open to the
71	71	public;
72	72	(15) providing for the organized solicitation and
73	73	collection for distributions through gifts, grants, and agreements
74	74	to nonprofit charitable, education, religious, and youth
75	75	organizations that provide direct human, health, and welfare
76	76	services;
77	77	(16) performing biomedical or scientific research or
78	78	biomedical or scientific education for the benefit of the public;
79	79	(17) operating a television station that produces or
80	80	broadcasts educational, cultural, or other public interest
81	81	programming and that receives grants from the Corporation for
82	82	Public Broadcasting under 47 U.S.C. Section 396, as amended;
83	83	(18) providing housing for low-income and
84	84	moderate-income families, for unmarried individuals 62 years of age
85	85	or older, for individuals with disabilities, and for families
86	86	displaced by urban renewal, through the use of trust assets that are
87	87	irrevocably and, pursuant to a contract entered into before
88	88	December 31, 1972, contractually dedicated on the sale or
89	89	disposition of the housing to a charitable organization that
90	90	performs charitable functions described by Subdivision (9);
91	91	(19) providing housing and related services to persons
92	92	who are 62 years of age or older in a retirement community, if the
93	93	retirement community provides independent living services,
94	94	assisted living services, and nursing services to its residents on
95	95	a single campus:
96	96	(A) without regard to the residents' ability to
97	97	pay; or
98	98	(B) as an organization that provides charitable
99	99	housing and services in an amount that is not less than four percent
100	100	of the charitable organization's net resident revenue [in which at
101	101	least four percent of the retirement community's combined net
102	102	resident revenue is provided in charitable care to its residents];
103	103	(20) providing housing on a cooperative basis to
104	104	students of an institution of higher education if:
105	105	(A) the organization is exempt from federal
106	106	income taxation under Section 501(a), Internal Revenue Code of
107	107	1986, as amended, by being listed as an exempt entity under Section
108	108	501(c)(3) of that code;
109	109	(B) membership in the organization is open to all
110	110	students enrolled in the institution and is not limited to those
111	111	chosen by current members of the organization;
112	112	(C) the organization is governed by its members;
113	113	and
114	114	(D) the members of the organization share the
115	115	responsibility for managing the housing;
116	116	(21) acquiring, holding, and transferring unimproved
117	117	real property under an urban land bank demonstration program
118	118	established under Chapter 379C, Local Government Code, as or on
119	119	behalf of a land bank;
120	120	(22) acquiring, holding, and transferring unimproved
121	121	real property under an urban land bank program established under
122	122	Chapter 379E, Local Government Code, as or on behalf of a land bank;
123	123	(23) providing housing and related services to
124	124	individuals who:
125	125	(A) are unaccompanied and homeless and have a
126	126	disabling condition; and
127	127	(B) have been continuously homeless for a year or
128	128	more or have had at least four episodes of homelessness in the
129	129	preceding three years;
130	130	(24) operating a radio station that broadcasts
131	131	educational, cultural, or other public interest programming,
132	132	including classical music, and that in the preceding five years has
133	133	received or been selected to receive one or more grants from the
134	134	Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
135	135	amended;
136	136	(25) providing, without regard to the beneficiaries'
137	137	ability to pay, tax return preparation services and assistance with
138	138	other financial matters; or
139	139	(26) providing services related to planning for the
140	140	placement of or placing children in foster or adoptive homes or
141	141	providing support or relief to women who are or may be pregnant and
142	142	who are considering placing their unborn children for adoption.
143	143	SECTION 2. Section 11.18(k), Tax Code, is amended by adding
144	144	Subdivision (1-a) and amending Subdivision (2) to read as follows:
145	145	(1-a) "Charitable housing and services" means the
146	146	following provided by a charitable organization to a person 62
147	147	years of age or older in financial need:
148	148	(A) housing, including as an independent living
149	149	facility, assisted living facility, or nursing facility; and
150	150	(B) any service designed to meet the unique needs
151	151	of a person 62 years of age or older, including:
152	152	(i) ministerial services;
153	153	(ii) government-sponsored indigent health
154	154	care;
155	155	(iii) social services;
156	156	(iv) health services;
157	157	(v) educational services; and
158	158	(vi) donations to an organization that
159	159	qualifies for an exemption under Subsection (d)(13) or (19).
160	160	(2) "Charity care," "government-sponsored indigent
161	161	health care," and "net resident revenue" are determined in the same
162	162	manner for a retirement community or nursing home as "charity
163	163	care," "government-sponsored indigent health care," and "net
164	164	patient revenue," respectively, are determined for a hospital under
165	165	Section 11.1801(a)(2).
166	166	SECTION 3. The changes in law made by this Act apply only to
167	167	an ad valorem tax year that begins on or after the effective date of
168	168	this Act.
169	169	SECTION 4. This Act takes effect January 1, 2026.