| 1 | 1 | | 89R4407 PRL-D |
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| 2 | 2 | | By: Eckhardt S.B. No. 773 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the exemption from ad valorem taxation of real property |
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| 10 | 10 | | owned by certain charitable organizations. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 11.18(a), Tax Code, is amended to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | (a) An organization that qualifies as a charitable |
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| 15 | 15 | | organization as provided by this section is entitled to an |
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| 16 | 16 | | exemption from taxation of: |
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| 17 | 17 | | (1) the buildings and tangible personal property that: |
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| 18 | 18 | | (A) are owned by the charitable organization; and |
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| 19 | 19 | | (B) except as permitted by Subsection (b), are |
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| 20 | 20 | | used exclusively by qualified charitable organizations; |
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| 21 | 21 | | (2) the real property owned by the charitable |
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| 22 | 22 | | organization consisting of: |
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| 23 | 23 | | (A) an incomplete improvement that: |
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| 24 | 24 | | (i) is under active construction or other |
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| 25 | 25 | | physical preparation; and |
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| 26 | 26 | | (ii) is designed and intended to be used |
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| 27 | 27 | | exclusively by qualified charitable organizations; and |
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| 28 | 28 | | (B) the land on which the incomplete improvement |
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| 29 | 29 | | is located that will be reasonably necessary for the use of the |
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| 30 | 30 | | improvement by qualified charitable organizations; [and] |
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| 31 | 31 | | (3) if the charitable organization is described by |
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| 32 | 32 | | Subsection (d)(1), (2), (3)(A)(ii), (5), (8), (13), (15), or (19), |
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| 33 | 33 | | the real property owned by the charitable organization consisting |
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| 34 | 34 | | of an interest in a mineral in place, including a royalty interest, |
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| 35 | 35 | | provided that the interest: |
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| 36 | 36 | | (A) is not severed from the surface estate; or |
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| 37 | 37 | | (B) was donated to the charitable organization by |
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| 38 | 38 | | the previous owner of the interest; and |
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| 39 | 39 | | (4) all real property that: |
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| 40 | 40 | | (A) is owned by a charitable organization |
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| 41 | 41 | | described by Subsection (d)(10), (21), or (22); and |
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| 42 | 42 | | (B) except as permitted by Subsection (b), is |
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| 43 | 43 | | used exclusively by the organization. |
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| 44 | 44 | | SECTION 2. The change in law made by this Act applies only |
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| 45 | 45 | | to an ad valorem tax year that begins on or after the effective date |
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| 46 | 46 | | of this Act. |
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| 47 | 47 | | SECTION 3. This Act takes effect September 1, 2025. |
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