Bettencourt’s Nonprofit Tax Exemption Needs A County Of 3.3 Million

The text as introduced · 505 words

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.