Guillen Bill Opens Property Tax Break To Political Committee Funders

The text as introduced · 286 words

By: Guillen
H.B. No. 3438

A BILL TO BE ENTITLED

AN ACT

relating to the property tax exemption for certain nonprofit

community business organizations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (a), Section 11.231, Tax Code, is

amended to read as follows:

(a) In this section, "nonprofit community business

organization" means an organization that meets the following

requirements:

(1) the organization has been in existence for at

least the preceding five years;

(2) the organization:

(A) is a nonprofit corporation organized under

the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,

Vernon's Texas Civil Statutes) or a nonprofit corporation formed

under the Texas Nonprofit Corporation Law, as described by Section

1.008, Business Organizations Code;

(B) is a nonprofit organization described by

Section 501(c)(6), Internal Revenue Code of 1986; and

(C) is not a statewide organization;

(3) for at least the preceding three years, the

organization has maintained a dues-paying membership of at least 50

members; and

(4) the organization:

(A) has a board of directors elected by the

members;

(B) does not compensate members of the board of

directors for service on the board;

(C) with respect to its activities in this state,

is engaged primarily in performing functions listed in Subsection

(d);

(D) is primarily supported by membership dues and

other income from activities substantially related to its primary

functions; and

(E) is not , and has not formed[ , and does not

financially support ] a political committee as defined by Section

251.001, Election Code.

SECTION 2. This Act applies only to an ad valorem tax year

that begins on or after the effective date of this Act.

SECTION 3. This Act takes effect January 1, 2026.