Texas 2025 - 89th Regular

Texas Senate Bill SB2956 Compare Versions

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1	1	By: Parker S.B. No. 2956
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the exemption from ad valorem taxation of property
9	9	owned by an organization engaged primarily in performing charitable
10	10	functions.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 11.184, Tax Code, is amended by amending
13	13	Subsection (k) and adding Subsections (k-1), (k-2), (k-3), and
14	14	(k-4) to read as follows:
15	15	(k) An exemption under this section expires when:
16	16	(1) the organization no longer owns the property
17	17	described by Subsection (c); or
18	18	(2) the comptroller determines based on the factors
19	19	provided by Subsection (e) that the organization no longer
20	20	qualifies for an exemption [at the end of the fifth tax year after
21	21	the year in which the exemption is granted. To continue to receive
22	22	an exemption under this section after that year, the organization
23	23	must obtain a new determination letter and reapply for the
24	24	exemption].
25	25	(k-1) An organization receiving an exemption under this
26	26	section shall notify the comptroller and the chief appraiser of the
27	27	appraisal district established for the county in which the exempt
28	28	property is located of each of the following material changes not
29	29	later than the 30th day after the date the material change occurs:
30	30	(1) the organization sells or otherwise disposes of
31	31	the property that is subject to the exemption;
32	32	(2) the Internal Revenue Service determines that the
33	33	organization is no longer an exempt entity under Section 501(c)(3),
34	34	Internal Revenue Code of 1986; or
35	35	(3) the organization no longer qualifies for an
36	36	exemption under Section 151.310.
37	37	(k-2) Notwithstanding Subsection (k), an organization that
38	38	received an exemption granted under this section that expired
39	39	before September 1, 2025, is entitled to an automatic reinstatement
40	40	of the expired exemption under this section for each tax year
41	41	following the tax year in which the exemption expired if the
42	42	organization:
43	43	(1) still owns the property that was exempt from
44	44	taxation under this section;
45	45	(2) has a valid determination letter issued by the
46	46	comptroller under Subsection (f); and
47	47	(3) submits a written request to the chief appraiser
48	48	of the appraisal district established for the county in which the
49	49	exempt property is located that includes:
50	50	(A) proof that the organization was previously
51	51	granted an exemption under this section for the property that is the
52	52	subject of the request; and
53	53	(B) a copy of the determination letter issued by
54	54	the comptroller under Subsection (f).
55	55	(k-3) If an organization is entitled to continue to receive
56	56	an exemption under Subsection (k-2), the exemption remains in
57	57	effect until it expires as provided by Subsection (k).
58	58	(k-4) An organization that is entitled to continue to
59	59	receive an exemption under Subsection (k-2) does not owe any tax on
60	60	the exempt property for the period starting on the date the
61	61	exemption expired under Subsection (k) and ending on the date the
62	62	organization is entitled to continue to receive the exemption under
63	63	Subsection (k-2). If the organization paid taxes on the property
64	64	during that period, the collector shall refund to the organization
65	65	the amount of tax imposed on the property. The collector shall pay
66	66	the refund not later than the 30th day after the date the chief
67	67	appraiser notifies the collector of the approval of the continued
68	68	exemption under Subsection (k-2).
69	69	SECTION 2. Section 11.43(c), Tax Code, is amended to read as
70	70	follows:
71	71	(c) An exemption provided by Section 11.13, 11.131, 11.132,
72	72	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.184,
73	73	11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
74	74	11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, or
75	75	11.35, once allowed, need not be claimed in subsequent years, and
76	76	except as otherwise provided by Subsection (e), the exemption
77	77	applies to the property until it changes ownership or the person's
78	78	qualification for the exemption changes. However, except as
79	79	provided by Subsection (r), the chief appraiser may require a
80	80	person allowed one of the exemptions in a prior year to file a new
81	81	application to confirm the person's current qualification for the
82	82	exemption by delivering a written notice that a new application is
83	83	required, accompanied by an appropriate application form, to the
84	84	person previously allowed the exemption. If the person previously
85	85	allowed the exemption is 65 years of age or older, the chief
86	86	appraiser may not cancel the exemption due to the person's failure
87	87	to file the new application unless the chief appraiser complies
88	88	with the requirements of Subsection (q), if applicable.
89	89	SECTION 3. This Act takes effect January 1, 2026.