Texas 2025 - 89th Regular

Texas Senate Bill SB2170 Compare Versions

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

Old	New	Differences
1	1	89R13864 CS-F
2	2	By: Hall S.B. No. 2170
3	3
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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 property of a
10	10	charitable organization that provides financial support for
11	11	medical care at certain institutions of higher education.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Sections 11.18(a) and (d), Tax Code, are amended
14	14	to read as follows:
15	15	(a) An organization that qualifies as a charitable
16	16	organization as provided by this section is entitled to an
17	17	exemption from taxation of:
18	18	(1) the buildings and tangible personal property that:
19	19	(A) are owned by the charitable organization; and
20	20	(B) except as permitted by Subsection (b), are
21	21	used exclusively by qualified charitable organizations;
22	22	(2) the real property owned by the charitable
23	23	organization consisting of:
24	24	(A) an incomplete improvement that:
25	25	(i) is under active construction or other
26	26	physical preparation; and
27	27	(ii) is designed and intended to be used
28	28	exclusively by qualified charitable organizations; and
29	29	(B) the land on which the incomplete improvement
30	30	is located that will be reasonably necessary for the use of the
31	31	improvement by qualified charitable organizations; and
32	32	(3) if the charitable organization is described by
33	33	Subsection (d)(1), (2), (3)(A)(ii), (5), (8), (13), (15), [or]
34	34	(19), or (27), the real property owned by the charitable
35	35	organization consisting of an interest in a mineral in place,
36	36	including a royalty interest, provided that the interest:
37	37	(A) is not severed from the surface estate; or
38	38	(B) was donated to the charitable organization by
39	39	the previous owner of the interest.
40	40	(d) A charitable organization must be organized exclusively
41	41	to perform religious, charitable, scientific, literary, or
42	42	educational purposes and, except as permitted by Subsections (h)
43	43	and (l), engage exclusively in performing one or more of the
44	44	following charitable functions:
45	45	(1) providing medical care without regard to the
46	46	beneficiaries' ability to pay, which in the case of a nonprofit
47	47	hospital or hospital system means providing charity care and
48	48	community benefits in accordance with Section 11.1801;
49	49	(2) providing support or relief to orphans, delinquent
50	50	or dependent children in need of residential care, children with
51	51	disabilities in need of residential care, abused or battered
52	52	spouses or children in need of temporary shelter, the impoverished,
53	53	or victims of natural disaster without regard to the beneficiaries'
54	54	ability to pay;
55	55	(3) providing support without regard to the
56	56	beneficiaries' ability to pay to:
57	57	(A) elderly persons, including the provision of:
58	58	(i) recreational or social activities; and
59	59	(ii) facilities designed to address the
60	60	special needs of elderly persons; or
61	61	(B) persons with disabilities, including
62	62	training and employment:
63	63	(i) in the production of commodities; or
64	64	(ii) in the provision of services under 41
65	65	U.S.C. Sections 8501-8506;
66	66	(4) preserving a historical landmark or site;
67	67	(5) promoting or operating a museum, zoo, library,
68	68	theater of the dramatic or performing arts, or symphony orchestra
69	69	or choir;
70	70	(6) promoting or providing humane treatment of
71	71	animals;
72	72	(7) acquiring, storing, transporting, selling, or
73	73	distributing water for public use;
74	74	(8) answering fire alarms and extinguishing fires with
75	75	no compensation or only nominal compensation to the members of the
76	76	organization;
77	77	(9) promoting the athletic development of boys or
78	78	girls under the age of 18 years;
79	79	(10) preserving or conserving wildlife;
80	80	(11) promoting educational development through loans
81	81	or scholarships to students;
82	82	(12) providing halfway house services pursuant to a
83	83	certification as a halfway house by the parole division of the Texas
84	84	Department of Criminal Justice;
85	85	(13) providing permanent housing and related social,
86	86	health care, and educational facilities for persons who are 62
87	87	years of age or older without regard to the residents' ability to
88	88	pay;
89	89	(14) promoting or operating an art gallery, museum, or
90	90	collection, in a permanent location or on tour, that is open to the
91	91	public;
92	92	(15) providing for the organized solicitation and
93	93	collection for distributions through gifts, grants, and agreements
94	94	to nonprofit charitable, education, religious, and youth
95	95	organizations that provide direct human, health, and welfare
96	96	services;
97	97	(16) performing biomedical or scientific research or
98	98	biomedical or scientific education for the benefit of the public;
99	99	(17) operating a television station that produces or
100	100	broadcasts educational, cultural, or other public interest
101	101	programming and that receives grants from the Corporation for
102	102	Public Broadcasting under 47 U.S.C. Section 396, as amended;
103	103	(18) providing housing for low-income and
104	104	moderate-income families, for unmarried individuals 62 years of age
105	105	or older, for individuals with disabilities, and for families
106	106	displaced by urban renewal, through the use of trust assets that are
107	107	irrevocably and, pursuant to a contract entered into before
108	108	December 31, 1972, contractually dedicated on the sale or
109	109	disposition of the housing to a charitable organization that
110	110	performs charitable functions described by Subdivision (9);
111	111	(19) providing housing and related services to persons
112	112	who are 62 years of age or older in a retirement community, if the
113	113	retirement community provides independent living services,
114	114	assisted living services, and nursing services to its residents on
115	115	a single campus:
116	116	(A) without regard to the residents' ability to
117	117	pay; or
118	118	(B) in which at least four percent of the
119	119	retirement community's combined net resident revenue is provided in
120	120	charitable care to its residents;
121	121	(20) providing housing on a cooperative basis to
122	122	students of an institution of higher education if:
123	123	(A) the organization is exempt from federal
124	124	income taxation under Section 501(a), Internal Revenue Code of
125	125	1986, as amended, by being listed as an exempt entity under Section
126	126	501(c)(3) of that code;
127	127	(B) membership in the organization is open to all
128	128	students enrolled in the institution and is not limited to those
129	129	chosen by current members of the organization;
130	130	(C) the organization is governed by its members;
131	131	and
132	132	(D) the members of the organization share the
133	133	responsibility for managing the housing;
134	134	(21) acquiring, holding, and transferring unimproved
135	135	real property under an urban land bank demonstration program
136	136	established under Chapter 379C, Local Government Code, as or on
137	137	behalf of a land bank;
138	138	(22) acquiring, holding, and transferring unimproved
139	139	real property under an urban land bank program established under
140	140	Chapter 379E, Local Government Code, as or on behalf of a land bank;
141	141	(23) providing housing and related services to
142	142	individuals who:
143	143	(A) are unaccompanied and homeless and have a
144	144	disabling condition; and
145	145	(B) have been continuously homeless for a year or
146	146	more or have had at least four episodes of homelessness in the
147	147	preceding three years;
148	148	(24) operating a radio station that broadcasts
149	149	educational, cultural, or other public interest programming,
150	150	including classical music, and that in the preceding five years has
151	151	received or been selected to receive one or more grants from the
152	152	Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
153	153	amended;
154	154	(25) providing, without regard to the beneficiaries'
155	155	ability to pay, tax return preparation services and assistance with
156	156	other financial matters; [or]
157	157	(26) providing services related to planning for the
158	158	placement of or placing children in foster or adoptive homes or
159	159	providing support or relief to women who are or may be pregnant and
160	160	who are considering placing their unborn children for adoption; or
161	161	(27) providing financial support for medical care at
162	162	an institution of higher education described by Section 63.101,
163	163	Education Code.
164	164	SECTION 2. The changes in law made by this Act apply only to
165	165	an ad valorem tax year that begins on or after the effective date of
166	166	this Act.
167	167	SECTION 3. This Act takes effect January 1, 2026.