Texas 2025 - 89th Regular

Texas Senate Bill SB2517 Compare Versions

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

Old	New	Differences
1	1	89R15638 DRS-F
2	2	By: Gutierrez S.B. No. 2517
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the exemption from ad valorem taxation of real property
10	10	leased to certain local public entities for use as a hospital and
11	11	related health care services.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
14	14	adding Section 11.1802 to read as follows:
15	15	Sec. 11.1802. REAL PROPERTY LEASED FOR CERTAIN HOSPITAL
16	16	USE. (a) A person is entitled to an exemption from taxation of the
17	17	portion of the real property that the person owns and leases to a
18	18	governmental entity established under Subchapter B, Chapter 265,
19	19	Health and Safety Code, for use as a hospital and the provision of
20	20	related health care services if:
21	21	(1) the portion of the real property that is leased to
22	22	the entity is:
23	23	(A) used exclusively by the entity for the
24	24	operation or administration of the hospital and the provision of
25	25	related health care services by the hospital; and
26	26	(B) reasonably necessary for a purpose described
27	27	by Paragraph (A); and
28	28	(2) the owner of the portion of the real property that
29	29	is leased to the entity certifies by affidavit to the entity that:
30	30	(A) if the lease agreement requires the entity to
31	31	pay the taxes imposed on the real property as a portion of the total
32	32	consideration paid to the property owner under the agreement, the
33	33	owner will reduce the total consideration required to be paid by the
34	34	entity under the lease agreement by an amount equal to the amount by
35	35	which the taxes on the real property are reduced as a result of the
36	36	exemption by providing a monthly or annual credit against the total
37	37	consideration due under the agreement; or
38	38	(B) if the lease agreement requires the entity to
39	39	pay the taxes imposed on the real property directly to the collector
40	40	for the applicable taxing unit or to the owner or the property
41	41	manager separately from the payment of rent to the property owner
42	42	under the agreement, the entity is no longer required to pay the
43	43	taxes to the collector, owner, or property manager, as applicable,
44	44	and the rent charged to the entity under the agreement is not
45	45	affected unless a term of the agreement specifically provides for a
46	46	change in the amount of the rent.
47	47	(b) A property owner required to provide an affidavit
48	48	described by Subsection (a)(2)(A) to a governmental entity shall:
49	49	(1) annually provide the entity with a disclosure
50	50	document stating the amount by which the taxes on the real property
51	51	are reduced as a result of the exemption and the method the owner
52	52	will implement to ensure that the total consideration for the lease
53	53	of the real property fully reflects the total amount of that
54	54	reduction; and
55	55	(2) reduce the total consideration for the lease of
56	56	the real property through a monthly or annual credit against the
57	57	total consideration to reflect the amount by which the taxes on the
58	58	real property are reduced as a result of the exemption.
59	59	(c) Section 25.07 does not apply to a leasehold interest in
60	60	real property for which the owner receives an exemption under this
61	61	section.
62	62	SECTION 2. This Act applies only to ad valorem taxes imposed
63	63	for a tax year beginning on or after the effective date of this Act.
64	64	SECTION 3. This Act takes effect January 1, 2026, but only
65	65	if the constitutional amendment proposed by the 89th Legislature,
66	66	Regular Session, 2025, authorizing the legislature to exempt from
67	67	ad valorem taxation real property leased to certain local public
68	68	entities for use as a hospital and related health care services is
69	69	approved by the voters. If that amendment is not approved by the
70	70	voters, this Act has no effect.