TX
Texas Senate Bill SB2973

Texas 2025 - 89th Regular

Texas Senate Bill SB2973

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

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.

Impact

If enacted, SB2973 will exempt real and personal properties owned by eligible nonprofit corporations from ad valorem taxes, provided the properties are used for the specified charitable, educational, or scientific purposes. This change could significantly impact the financial dynamics of nonprofit organizations operating within these populous areas by allowing them to allocate resources that would otherwise go to taxes towards their programs and services aimed at community enhancement. As such, it could lead to increased investment in agricultural initiatives and educational outreach aimed at youth.

Summary

Senate Bill 2973 proposes amendments to the Texas Tax Code concerning exemptions from ad valorem taxation for properties owned by certain nonprofit corporations. Specifically, the bill applies to nonprofit organizations that facilitate activities promoting agriculture, support youth programs, and provide educational services in populous counties—defined as those with populations of 3.3 million or more. By granting tax exemptions to these organizations, the bill aims to foster community development and support essential sectors that enhance the welfare of local populations.

Contention

While the bill has the potential to benefit specific sectors within the community, there might be contention regarding its implications on the overall tax base and local revenue streams. Critics could argue that blanket exemptions for nonprofits may negatively affect municipal budgets, particularly in counties where funding for public services is heavily reliant on property taxes. Additionally, the provisions regarding incidental use of exempt property could raise questions about compliance and the appropriate use of tax-exempt status, particularly if revenues generated from other uses do not directly benefit the intended charitable causes.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 11. Taxable Property And Exemptions
    • Section: New Section

Companion Bills

TX HB4580

Similar 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.

Previously Filed As

TX HB1801

Relating to an exemption from ad valorem taxation of real property used to operate a child-care facility.

TX HB2987

Relating to the exemption of tangible personal property from ad valorem taxation; making conforming changes.

TX SB1789

Relating to the exemption of tangible personal property from ad valorem taxation; making conforming changes.

TX HB4851

Relating to an exemption from ad valorem taxation of the real and personal property owned and exclusively used by a labor organization for the organization's operations.

TX HB741

Relating to an exemption from ad valorem taxation of property owned by a charitable organization and used to provide child-care services.

TX SB2352

Relating to the exemption from ad valorem taxation of property owned by a charitable organization that provides a meeting place and support services for organizations that provide assistance to persons with substance use disorders and their families.

TX HB4774

Relating to the exemption from ad valorem taxation of property owned by an organization engaged primarily in performing charitable functions.

TX SB2361

Relating to the exemption from ad valorem taxation of property owned by an organization engaged primarily in performing charitable functions.

TX HB144

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homestead of an unpaid caregiver of an individual who is eligible to receive long-term services and supports under the Medicaid program while the individual is on a waiting list for the services and supports.

TX HB147

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homestead of an unpaid caregiver of an individual who is eligible to receive long-term services and supports under the Medicaid program while the individual is on a waiting list for the services and supports.

Similar Bills

No similar bills found.