89R8445 PRL-F
By: Bettencourt S.B. No. 2973
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of property
owned by certain nonprofit corporations and used to promote
agriculture, support youth, and provide educational support in the
community.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.23, Tax Code, is amended by adding
Subsection (n) to read as follows:
(n) Promotion of Agriculture, Support of Youth, and
Provision of Educational Support in Populous Counties. In a county
with a population of 3.3 million or more, all real and personal
property owned by a nonprofit corporation, as that term is defined
by Section 22.001, Business Organizations Code, organized
exclusively for charitable, educational, and scientific purposes,
and held for use in promoting agriculture, supporting youth, and
providing educational support in the community is exempt from all
ad valorem taxation. Use of property exempted by this subsection
for purposes other than promoting agriculture, supporting youth,
and providing educational support in the community does not result
in the loss of the exemption if the revenue derived from that
incidental use benefits the beneficiaries of the charitable
organization that owns the property. This subsection does not
exempt from ad valorem taxation any interest in real or personal
property, including a leasehold or other possessory interest, of a
for-profit lessee of property for which a nonprofit corporation is
entitled to an exemption from taxation under this subsection.
SECTION 2. Section 11.43(c), Tax Code, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), [or] (m), or (n),
11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35,
[or] 11.36, or 11.37, once allowed, need not be claimed in
subsequent years, and except as otherwise provided by Subsection
(e), the exemption applies to the property until it changes
ownership or the person's qualification for the exemption changes.
However, except as provided by Subsection (r), the chief appraiser
may require a person allowed one of the exemptions in a prior year
to file a new application to confirm the person's current
qualification for the exemption by delivering a written notice that
a new application is required, accompanied by an appropriate
application form, to the person previously allowed the exemption.
If the person previously allowed the exemption is 65 years of age or
older, the chief appraiser may not cancel the exemption due to the
person's failure to file the new application unless the chief
appraiser complies with the requirements of Subsection (q), if
applicable.
SECTION 3. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 4. To the extent of any conflict, this Act prevails
over another Act of the 89th Legislature, Regular Session, 2025,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 5. This Act takes effect January 1, 2026.