(a)
Except as provided by Subsections (b) and
(c) of this section, property owned by this
state or a political subdivision of this
state is exempt from taxation if the property
is used for public purposes.
(b)
Land owned by the Permanent University Fund
is taxable for county purposes. Any notice
required by Section 25.19 of this code shall
be sent to the comptroller, and the comptroller
shall appear in behalf of the state in any
protest or appeal relating to taxation of
Permanent University Fund land.
(c)
Agricultural or grazing land owned by a county
for the benefit of public schools under Article
VII, Section 6, of the Texas Constitution
is taxable for all purposes. The county shall
pay the taxes on the land from the revenue
derived from the land. If revenue from the
land is insufficient to pay the taxes, the
county shall pay the balance from the county
general fund.
(d)
Property owned by the state that is not used
for public purposes is taxable. Property
owned by a state agency or institution is
not used for public purposes if the property
is rented or leased for compensation to a
private business enterprise to be used by
it for a purpose not related to the performance
of the duties and functions of the state
agency or institution or used to provide
private residential housing for compensation
to members of the public other than students
and employees of the state agency or institution
owning the property, unless the residential
use is secondary to its use by an educational
institution primarily for instructional purposes.
Any notice required by Section 25.19 of this
code shall be sent to the agency or institution
that owns the property, and it shall appear
in behalf of the state in any protest or
appeal related to taxation of the property.
(e)
It is provided, however, that property that
is held or dedicated for the support, maintenance,
or benefit of an institution of higher education
as defined in Chapter 61, Texas Education
Code, but is not rented or leased for compensation
to a private business enterprise to be used
by it for a purpose not related to the performance
of the duties and functions of the state
or institution or is not rented or leased
to provide private residential housing to
members of the public other than students
and employees of the state or institution
is not taxable. All oil, gas, and other mineral
interests owned by an institution of higher
education are exempt from all ad valorem
taxes. Property bequeathed to an institution
is exempt from the assessment of ad valorem
taxes from the date of the decedent's death,
unless:
(1)
the property is leased for compensation to
a private business enterprise as provided
in this subsection; or
(2)
the transfer of the property to an institution
is contested in a probate court. In this
case, ad valorem taxes shall be assessed
to the estate of the decedent until the final
determination of the disposition of the property
is made. The property is exempt from the
assessment of ad valorem taxes upon vesting
of the property in the institution.
(f)
Property of a higher education development
foundation or an alumni association that
is located on land owned by the state for
the support, maintenance, or benefit of an
institution of higher education as defined
in Chapter 61, Education Code, is exempt
from taxation if:
(1)
the foundation or organization meets the
requirements of Sections 11.18(e) and (f)
and is organized exclusively to operate programs
or perform other activities for the benefit
of institutions of higher education; and
(2)
the property is used exclusively in those
programs or activities.
(g)
For purposes of this section, an improvement
is owned by the state and is used for public
purposes if it is:
(1)
located on land owned by the Texas Department
of Corrections;
(2)
leased and used by the department; and
(3)
subject to a lease-purchase agreement providing
that legal title to the improvement passes
to the department at the end of the lease
period.
Sec.
11.111. Public Property Used to Provide
Transitional Housing for Indigent Persons.
(a)
The governing body of a taxing unit by ordinance
or order may exempt from ad valorem taxation
residential property owned by the United
States or an agency of the United States
and used to provide transitional housing
for the indigent under a program operated
or directed by the United States Department
of Housing and Urban Development.
(b)
For purposes of this section, transitional
housing for indigent individuals is housing
provided at no cost or nominal cost to an
indigent individual or family during a temporary
period in which the individual or a member
of the family participates in a job training
program, job placement program, or other
program intended to assist the individual
or family to become self-sufficient.
(c)
The exemption provided by this section applies
even if the United States or its agency leases
the property to a nonprofit organization
in return for the organization's assistance
in operating the program to provide transitional
housing, as long as the lease does not require
the nonprofit organization to pay more than
a nominal amount to lease the property.
(a)
A family or single adult is entitled to an
exemption from taxation for the county purposes
authorized in Article VIII, Section 1-a,
of the Texas Constitution of $3,000 of the
assessed value of his residence homestead.
(b)
An adult is entitled to exemption from taxation
by a school district of $5,000 of the appraised
value of his residence homestead.
(c)
In addition to the exemption provided by
Subsection (b) of this section, an adult
who is disabled or is 65 or older is entitled
to an exemption from taxation by a school
district of $10,000 of the appraised value
of his residence homestead.
(d)
In addition to the exemptions provided by
Subsections (b) and (c) of this section,
an individual who is disabled or is 65 or
older is entitled to an exemption from taxation
by a taxing unit of a portion (the amount
of which is fixed as provided by Subsection
(e) of this section) of the appraised value
of his residence homestead if the exemption
is adopted either:
(1)
by the governing body of the taxing unit;
or
(2)
by a favorable vote of a majority of the
qualified voters of the taxing unit at an
election called by the governing body of
a taxing unit, and the governing body shall
call the election on the petition of at least
20 percent of the number of qualified voters
who voted in the preceding election of the
taxing unit.
(e)
The amount of an exemption adopted as provided
by Subsection (d) of this section is $3,000
of the appraised value of the residence homestead
unless a larger amount is specified by:
(1)
the governing body authorizing the exemption
if the exemption is authorized as provided
by Subdivision (1) of Subsection (d) of this
section; or
(2)
the petition for the election if the exemption
is authorized as provided by Subdivision
(2) of Subsection (d) of this section.
(f)
Once authorized, an exemption adopted as
provided by Subsection (d) of this section
may be repealed or decreased or increased
in amount by the governing body of the taxing
unit or by the procedure authorized by Subdivision
(2) of Subsection (d) of this section. In
the case of a decrease, the amount of the
exemption may not be reduced to less than
$3,000 of the market value.
(g)
If the residence homestead exemption provided
by Subsection (d) of this section is adopted
by a county that levies a tax for the county
purposes authorized by Article VIII, Section
1-a, of the Texas Constitution, the residence
homestead exemptions provided by Subsections
(a) and (d) of this section may not be aggregated
for the county tax purposes. An individual
who is eligible for both exemptions is entitled
to take only the exemption authorized as
provided by Subsection (d) of this section
for purposes of that county tax.
(h)
Joint or community owners may not each receive
the same exemption provided by or pursuant
to this section for the same residence homestead
in the same year. An eligible disabled person
who is 65 or older may not receive both a
disabled and an elderly residence homestead
exemption but may choose either.
(i)
The assessor and collector for a taxing unit
may disregard the exemptions authorized by
Subsection (b), (c), (d), or (n) of this
section and assess and collect a tax pledged
for payment of debt without deducting the
amount of the exemption if:
(1)
prior to adoption of the exemption, the unit
pledged the taxes for the payment of a debt;
and
(2)
granting the exemption would impair the obligation
of the contract creating the debt.
(j)
For purposes of this section:
(1) "Residence
homestead" means a structure (including
a mobile home) or a separately secured and
occupied portion of a structure (together
with the land, not to exceed 20 acres, and
improvements used in the residential occupancy
of the structure, if the structure and the
land and improvements have identical ownership)
that:
(A)
is owned by one or more individuals, either
directly or through a beneficial interest
in a qualifying trust;
(B)
is designed or adapted for human residence;
(C)
is used as a residence; and
(D)
is occupied as his principal residence by
an owner or, for property owned through a
beneficial interest in a qualifying trust,
by a trustor of the trust who qualifies for
the exemption.
(2) "Trustor" means
a person who transfers an interest in residential
property to a qualifying trust, whether by
deed or by will, or the person's spouse.
(3) "Qualifying
trust" means a trust:
(A)
in which the agreement or will creating the
trust provides that the trustor of the trust
has the right to use and occupy as the trustor's
principal residence residential property
rent free and without charge except for taxes
and other costs and expenses specified in
the instrument:
(i)
for life;
(ii)
for the lesser of life or a term of years;
or
(iii)
until the date the trust is revoked or terminated
by an instrument that describes the property
with sufficient certainty to identify it
and is recorded in the real property records
of the county in which the property is located;
and
(B)
that acquires the property in an instrument
of title that:
(i)
describes the property with sufficient certainty
to identify it and the interest acquired;
(ii)
is recorded in the real property records
of the county in which the property is located;
and
(iii)
is executed by the trustor or the personal
representative of the trustor.
(k)
A qualified residential structure does not
lose its character as a residence homestead
if a portion of the structure is rented to
another or is used primarily for other purposes
that are incompatible with the owner's residential
use of the structure. However, the amount
of any residence homestead exemption does
not apply to the value of that portion of
the structure that is used primarily for
purposes that are incompatible with the owner's
residential use.
(l)
A qualified residential structure does not
lose its character as a residence homestead
when the owner who qualifies for the exemption
temporarily stops occupying it as a principal
residence if that owner does not establish
a different principal residence and intends
to return and occupy the structure as his
principal residence.
(m)
In this section:
(1) "Disabled" means
under a disability for purposes of payment
of disability insurance benefits under Federal
Old-Age, Survivors, and Disability Insurance.
(2) "School
district" means a political subdivision
organized to provide general elementary and
secondary public education. "School
district" does not include a junior
college district or a political subdivision
organized to provide special education services.
(n)
In addition to any other exemptions provided
by this section, an individual is entitled
to an exemption from taxation by a taxing
unit of a percentage of the appraised value
of his residence homestead if the exemption
is adopted by the governing body of the taxing
unit before May 1 in the manner provided
by law for official action by the body. If
the percentage set by the taxing unit produces
an exemption in a tax year of less than $5,000
when applied to a particular residence homestead,
the individual is entitled to an exemption
of $5,000 of the appraised value. The percentage
adopted by the taxing unit may not exceed
20 percent.
(o)
For purposes of this section, a residence
homestead also may consist of an interest
in real property created through ownership
of stock in a corporation incorporated under
the Cooperative Association Act (Article
1396-50.01, Vernon's Texas Civil Statutes)
to provide dwelling places to its stockholders
if:
(1)
the interests of the stockholders of the
corporation are appraised separately as provided
by Section 23.19 of this code in the tax
year to which the exemption applies;
(2)
ownership of the stock entitles the owner
to occupy a dwelling place owned by the corporation;
(3)
the dwelling place is a structure or a separately
secured and occupied portion of a structure;
and
(4)
the dwelling place is occupied as his principal
residence by a stockholder who qualifies
for the exemption.
(p)
Exemption under this section for a homestead
described by Subsection (o) of this section
extends only to the dwelling place occupied
as a residence homestead and to a portion
of the total common area used in the residential
occupancy that is equal to the percentage
of the total amount of the stock issued by
the corporation that is owned by the homestead
claimant. The size of a residence homestead
under Subsection (o) of this section, including
any relevant portion of common area, may
not exceed 20 acres. Text of subsec.
(q)
effective upon approval by the voters of
the constitutional amendment proposed by
Acts 1995, 74th Leg., H.J.R. No. 64 (q) The
surviving spouse of an individual who received
an exemption under Subsection (d) for the
residence homestead of a person 65 or older
is entitled to an exemption for the same
property from the same taxing unit in an
amount equal to that of the exemption received
by the deceased spouse if:
(1)
the deceased spouse died in a year in which
the deceased spouse received the exemption;
(2)
the surviving spouse was 55 or older when
the deceased spouse died; and
(3)
the property was the residence homestead
of the surviving spouse when the deceased
spouse died and remains the residence homestead
of the surviving spouse. Text of subsec.
(r)
An individual who receives an exemption under
Subsection (d) is not entitled to an exemption
under Subsection (q).
Sec.
11.14. Tangible Personal Property not Producing
Income.
(a)
A person is entitled to an exemption from
taxation of all tangible personal property,
other than manufactured homes, that the person
owns and that is not held or used for production
of income.
(b)
In this section, "manufactured home" has
the meaning assigned by Section 11.432 of
this code.
(c)
The governing body of a taxing unit, by resolution
or order, depending upon the method prescribed
by law for official action by that governing
body, may provide for taxation of tangible
personal property exempted under Subsection
(a). If a taxing unit provides for taxation
of tangible personal property as provided
by this subsection, the exemption prescribed
by Subsection (a) does not apply to that
unit.
(d)
The central appraisal district for the county
shall determine the cost of appraising tangible
personal property required by a taxing unit
under the provisions of Subsection (c) and
shall assess those costs to the taxing unit
or taxing units which provide for the taxation
of tangible personal property.
(e)
A political subdivision choosing to tax property
otherwise made exempt by this section, pursuant
to Article VIII, Section 1(e), of the Texas
Constitution, may not do so until the governing
body of the political subdivision has held
a public hearing on the matter, after having
given notice of the hearing at the times
and in the manner required by this subsection,
and has found that the action will be in
the public interest of all the residents
of that political subdivision. At the hearing,
all interested persons are entitled to speak
and present evidence for or against taxing
the property. Not later than the 30th day
prior to the date of a hearing held under
this subsection, notice of the hearing must
be:
(1)
published in a newspaper having general circulation
in the political subdivision and in a section
of the newspaper other than the advertisement
section;
(2)
not less than one-half of one page in size;
and
(3)
republished on not less than three separate
days during the period beginning with the
10th day prior to the hearing and ending
with the actual date of the hearing.
Sec.
11.145. Income-Producing Tangible Personal
Property Having Value of Less Than $500.
(a)
A person is entitled to an exemption from
taxation of the tangible personal property
the person owns that is held or used for
the production of income if that property
has a taxable value of less than $500.
(b)
The exemption provided by Subsection (a)
applies to each separate taxing unit in which
a person holds or uses tangible personal
property for the production of income, and,
for the purposes of Subsection (a), all property
in each taxing unit is aggregated to determine
taxable value.
Sec.
11.146. Mineral Interest Having Value of
Less Than $500.
(a)
A person is entitled to an exemption from
taxation of a mineral interest the person
owns if the interest has a taxable value
of less than $500.
(b)
The exemption provided by Subsection (a)
applies to each separate taxing unit in which
a person owns a mineral interest and, for
the purposes of Subsection (a), all mineral
interests in each taxing unit are aggregated
to determine value.
(a)
A producer is entitled to an exemption from
taxation of the farm products that he produces
and owns. A nursery product, as defined by
Section 71.041, Agriculture Code, is a farm
product for purposes of this section if it
is in a growing state.
(b)
Farm products in the hands of the producer
are exempt.
(c)
For purposes of this exemption, the following
definitions apply:
(1) "Farm
products" includes livestock and poultry.
(2) "In
the hands of the producer," for livestock
and poultry means under the ownership of
the person who is financially providing for
the physical requirements of such livestock
and poultry on January 1 of the tax year.
(a)
The governing body of a taxing unit may exempt
a person from taxation of each boat the person
owns and uses primarily in the taking of
fish, shrimp, shellfish, and other marine
life for resale as food for human consumption.
(b)
The exemption provided by this section also
applies to the nets and other equipment primarily
used in connection with the use of the boat
for the exempt purposes provided by Subsection
(a).
(c)
In this section, "boat" means a
vessel that does not exceed 100 feet in length.
(a)
An organization that qualifies as a charitable
organization as provided by this section
is entitled to an exemption from taxation
of the buildings and tangible personal property
that:
(1)
are owned by the charitable organization;
and
(2)
except as permitted by Subsection (b) of
this section, are used exclusively by qualified
charitable organizations.
(b)
Use of exempt property by persons who are
not charitable organizations qualified as
provided by this section does not result
in the loss of an exemption authorized by
this section if the use is incidental to
use by qualified charitable organizations
and limited to activities that benefit the
beneficiaries of the charitable organizations
that own or use the property.
(c)
To qualify as a charitable organization for
the purposes of this section, an organization,
whether operated by an individual, as a corporation,
as a foundation, as a trust, or as an association,
must meet the applicable requirements of
Subsections (d), (e), (f), and (g) of this
section.
(d)
A charitable organization must be organized
exclusively to perform religious, charitable,
scientific, literary, or educational purposes
and, except as permitted by Subsection (h)
of this section, engage exclusively in performing
one or more of the following charitable functions:
(1)
providing medical care without regard to
the beneficiaries' ability to pay, which
in the case of a nonprofit hospital or hospital
system means providing charity care and community
benefits as set forth in Paragraph (A), (B),
(C), (D), (E), (F), (G), or (H):
(A)
charity care and government-sponsored indigent
health care are provided at a level which
is reasonable in relation to the community
needs, as determined through the community
needs assessment, the available resources
of the hospital or hospital system, and the
tax-exempt benefits received by the hospital
or hospital system;
(B)
charity care and government-sponsored indigent
health care are provided in an amount equal
to at least four percent of the hospital's
or hospital system's net patient revenue;
(C)
charity care and government-sponsored indigent
health care are provided in an amount equal
to at least 100 percent of the hospital's
or hospital system's tax-exempt benefits,
excluding federal income tax;
(D)
a nonprofit hospital that has been designated
as a disproportionate share hospital under
the state Medicaid program in the current
year or in either of the previous two fiscal
years shall be considered to have provided
a reasonable amount of charity care and government-sponsored
indigent health care and shall be deemed
in compliance with the standards in this
subsection;
(E)
for tax years before 1996, charity care and
community benefits are provided in a combined
amount equal to at least five percent of
the hospital's or hospital system's net patient
revenue, provided that charity care and government-sponsored
indigent health care are provided in an amount
equal to at least three percent of net patient
revenue;
(F)
beginning with the hospital's or hospital
system's tax year starting after 1995, charity
care and community benefits are provided
in a combined amount equal to at least five
percent of the hospital's or hospital system's
net patient revenue, provided that charity
care and government-sponsored indigent health
care are provided in an amount equal to at
least four percent of net patient revenue;
(G)
a hospital operated on a nonprofit basis
that is located in a county with a population
of less than 50,000 and in which the entire
county or the population of the entire county
has been designated as a health professionals
shortage area is considered to be in compliance
with the standards provided by this subsection;
or
(H)
a hospital providing health care services
to inpatients or outpatients without receiving
any payment for providing those services
from any source, including the patient or
person legally obligated to support the patient,
third-party payors, Medicare, Medicaid, or
any other state or local indigent care program
but excluding charitable donations, legacies,
bequests, or grants or payments for research,
is considered to be in compliance with the
standards provided by this subsection;
(2)
providing support or relief to orphans, delinquent,
dependent, or handicapped children in need
of residential care, abused or battered spouses
or children in need of temporary shelter,
the impoverished, or victims of natural disaster
without regard to the beneficiaries' ability
to pay;
(3)
providing support to elderly persons or the
handicapped without regard to the beneficiaries'
ability to pay;
(4)
preserving a historical landmark or site;
(5)
promoting or operating a museum, zoo, library,
theater of the dramatic or performing arts,
or symphony orchestra or choir;
(6)
promoting or providing humane treatment of
animals;
(7)
acquiring, storing, transporting, selling,
or distributing water for public use;
(8)
answering fire alarms and extinguishing fires
with no compensation or only nominal compensation
to the members of the organization;
(9)
promoting the athletic development of boys
or girls under the age of 18 years;
(10)
preserving or conserving wildlife;
(11)
promoting educational development through
loans or scholarships to students;
(12)
providing halfway house services pursuant
to a certification as a halfway house by
the Board of Pardons and Paroles;
(13)
providing permanent housing and related social,
health care, and educational facilities for
persons who are 62 years of age or older
without regard to the residents' ability
to pay;
(14)
promoting or operating an art gallery, museum,
or collection, in a permanent location or
on tour, that is open to the public;
(15)
providing for the organized solicitation
and collection for distributions through
gifts, grants, and agreements to nonprofit
charitable, education, religious, and youth
organizations that provide direct human,
health, and welfare services;
(16)
performing biomedical or scientific research
or biomedical or scientific education for
the benefit of the public; or
(17)
operating a television station that produces
or broadcasts educational, cultural, or other
public interest programming and that receives
grants from the Corporation for Public Broadcasting
under 47 U.S.C. Section 396. For purposes
of satisfying Paragraph (F) of Subdivision
(1), a hospital or hospital system may not
change its existing fiscal year unless the
hospital or hospital system changes its ownership
or corporate structure as a result of a sale
or merger. For purposes of this subsection,
a hospital that satisfies Paragraph (A),
(D), (G), or (H) of Subdivision (1) shall
be excluded in determining a hospital system's
compliance with the standards provided by
Paragraph (B), (C), (E), or (F) of Subdivision
(1). For purposes of this subsection, the
terms "charity care," "government-sponsored
indigent health care," "health
care organization," "hospital system," "net
patient revenue," "nonprofit hospital," and "tax-exempt
benefits" have the meanings set forth
in Sections 311.031 and 311.042, Health and
Safety Code. A determination of the amount
of community benefits and charity care and
government-sponsored indigent health care
provided by a hospital or hospital system
and the hospital's or hospital system's compliance
with the requirements of Section 311.045,
Health and Safety Code, shall be based on
the most recently completed and audited prior
fiscal year of the hospital or hospital system.
The providing of charity care and government-sponsored
indigent health care in accordance with Paragraph
(A) of Subdivision (1) shall be guided by
the prudent business judgment of the hospital
which will ultimately determine the appropriate
level of charity care and government-sponsored
indigent health care based on the community
needs, the available resources of the hospital,
the tax-exempt benefits received by the hospital,
and other factors that may be unique to the
hospital, such as the hospital's volume of
Medicare and Medicaid patients. These criteria
shall not be determinative factors, but shall
be guidelines contributing to the hospital's
decision along with other factors which may
be unique to the hospital. The formulas contained
in Paragraphs (B), (C), (E), and (F) of Subdivision
(1) shall also not be considered determinative
of a reasonable amount of charity care and
government-sponsored indigent health care.
The requirements of this subsection shall
not apply to the extent a hospital or hospital
system demonstrates that reductions in the
amount of community benefits, charity care,
and government-sponsored indigent health
care are necessary to maintain financial
reserves at a level required by a bond covenant,
are necessary to prevent the hospital or
hospital system from endangering its ability
to continue operations, or if the hospital
or hospital system, as a result of a natural
or other disaster, is required substantially
to curtail its operations. In any fiscal
year that a hospital or hospital system,
through unintended miscalculation, fails
to meet any of the standards in Subdivision
(1), the hospital or hospital system shall
not lose its tax-exempt status without the
opportunity to cure the miscalculation in
the fiscal year following the fiscal year
the failure is discovered by both meeting
one of the standards and providing an additional
amount of charity care and government-sponsored
indigent health care that is equal to the
shortfall from the previous fiscal year.
A hospital or hospital system may apply this
provision only once every five years.
(e)
A charitable organization must be operated
in a way that does not result in accrual
of distributable profits, realization of
private gain resulting from payment of compensation
in excess of a reasonable allowance for salary
or other compensation for services rendered,
or realization of any other form of private
gain and, if the organization performs one
or more of the charitable functions specified
by Subsection (d) of this section other than
a function specified in Subdivision (1),
(2), (8), (9), (12), or (16), be organized
as a nonprofit corporation as defined by
the Texas Non-Profit Corporation Act.
(f)
A charitable organization must, by charter,
bylaw, or other regulation adopted by the
organization to govern its affairs:
(1)
pledge its assets for use in performing the
organization's charitable functions; and
(2)
direct that on discontinuance of the organization
by dissolution or otherwise:
(A)
the assets are to be transferred to this
state or to an educational, religious, charitable,
or other similar organization that is qualified
as a charitable organization under Section
501(c)(3), Internal Revenue Code of 1986,
as amended; or
(B)
if required for the organization to qualify
as a tax-exempt organization under Section
501(c)(12), Internal Revenue Code of 1986,
as amended, the assets are to be transferred
directly to the organization's members, each
of whom, by application for an acceptance
of membership in the organization, has agreed
to immediately transfer those assets to this
state or to an educational, religious, charitable,
or other similar organization that is qualified
as a charitable organization under Section
501(c)(3), Internal Revenue Code of 1986,
as amended, as designated in the bylaws,
charter, or regulation adopted by the organization.
(g)
A charitable organization that performs a
charitable function specified by Subsection
(d)(15) of this section must:
(1)
be affiliated with a state or national organization
that authorizes, approves, or sanctions volunteer
charitable fundraising organizations;
(2)
qualify for exemption under Section 501(c)(3),
Internal Revenue Code of 1986, as amended;
(3)
be governed by a volunteer board of directors;
and
(4)
distribute contributions to at least five
other associations to be used for general
charitable purposes, with all recipients
meeting the following criteria:
(A)
be governed by a volunteer board of directors;
(B)
qualify for exemption under Section 501(c)(3),
Internal Revenue Code of 1986, as amended;
(C)
receive a majority of annual revenue from
private or corporate charitable gifts and
government agencies; and
(D)
provide services without regard to the ability
of persons receiving the services to pay
for the services.
(h)
Performance of noncharitable functions by
a charitable organization that owns or uses
exempt property does not result in loss of
an exemption authorized by this section if
those other functions are incidental to the
organization's charitable functions.
(i)
In this section, "building" includes
the land that is reasonably necessary for
use of, access to, and ornamentation of the
building.
(j)
exemption of an organization preserving or
conserving wildlife is limited to land and
improvements and may not exceed 1,000 acres
in any one county.
Sec.
11.181. Charitable Organizations Improving
Property for Low-Income Housing.
(a)
An organization is entitled to an exemption
from taxation of improved or unimproved real
property it owns if the organization:
(1)
meets the requirements of a charitable organization
provided by Sections 11.18(e) and (f);
(2)
owns the property for the purpose of building
or repairing housing on the property primarily
with volunteer labor to sell without profit
to an individual or family satisfying the
organization's low-income and other eligibility
requirements; and
(3)
engages exclusively in the building, repair,
and sale of housing as described by Subdivision
(2), and related activities.
(b)
Property may not be exempted under Subsection
(a) after the third anniversary of the date
the organization acquires the property.
(c)
An organization entitled to an exemption
under Subsection (a) is also entitled to
an exemption from taxation of any building
or tangible personal property the organization
owns and uses in the administration of its
acquisition, building, repair, or sale of
property. To qualify for an exemption under
this subsection, property must be used exclusively
by the charitable organization, except that
another individual or organization may use
the property for activities incidental to
the charitable organization's use that benefit
the beneficiaries of the charitable organization.
(d)
For the purposes of Subsection(e), the chief
appraiser shall determine the market value
of property exempted under Subsection (a)
and shall record the market value in the
appraisal records.
(e)
If the organization that owns improved or
unimproved real property that has been exempted
under Subsection (a) sells the property to
a person other than an individual or family
satisfying the organization's low-income
or other eligibility requirements, a penalty
is imposed on the property equal to the amount
of the taxes that would have been imposed
on the property in each tax year that the
property was exempted from taxation under
Subsection (a), plus interest at an annual
rate of 12 percent calculated from the dates
on which the taxes would have become due.
(f)
The charitable organization and the purchaser
of the property from that organization are
jointly and severally liable for the penalty
and interest imposed under Subsection (e).
A tax lien in favor of all taxing units for
which the penalty is imposed attaches to
the property to secure payment of the penalty
and interest.
(g)
The chief appraiser shall make an entry in
the appraisal records for the property against
which a penalty under Subsection (e) is imposed
and shall deliver written notice of the imposition
of the penalty and interest to the charitable
organization and to the person who purchased
the property from that organization.
Sec.
11.19. Youth Spiritual, Mental, and Physical
Development Associations.
(a)
An association that qualifies as a youth
development association as provided by Subsection
(d) of this section is entitled to an exemption
from taxation of the tangible property that:
(1)
is owned by the association;
(2)
except as permitted by Subsection (b) of
this section, is used exclusively by qualified
youth development associations; and
(3)
is reasonably necessary for the operation
of the association.
(b)
Use of exempt tangible property by persons
who are not youth development associations
qualified as provided by Subsection (d) of
this section does not result in the loss
of an exemption under this section if the
use is incidental to use by qualified associations
and benefits the individuals the associations
serve.
(c)
An association that qualifies as a youth
development association as provided by Subsection
(d) of this section is entitled to an exemption
from taxation of those endowment funds the
association owns that are used exclusively
for the support of the association and are
invested exclusively in bonds, mortgages,
or property purchased at a foreclosure sale
for the purpose of satisfying or protecting
the bonds or mortgages. However, foreclosure-sale
property that is held by an endowment fund
for longer than the two-year period immediately
following purchase at the foreclosure sale
is not exempt from taxation.
(d)
To qualify as a youth development association
for the purposes of this section, an association
must:
(1)
engage primarily in promoting the threefold
spiritual, mental, and physical development
of boys, girls, young men, or young women;
(2)
be operated in a way that does not result
in accrual of distributable profits, realization
of private gain resulting from payment of
compensation in excess of a reasonable allowance
for salary or other compensation for services
rendered, or realization of any other form
of private gain;
(3)
operate in conjunction with a state or national
organization that is organized and operated
for the same purpose as the association;
and
(4)
by charter, bylaw, or other regulation adopted
by the association to govern its affairs:
(A)
pledge its assets for use in performing the
association's youth development functions;
and
(B)
direct that on discontinuance of the association
by dissolution or otherwise the assets are
to be transferred to this state or to a charitable,
educational, religious, or other similar
organization that is qualified as a charitable
organization under Section 501(c)(3), Internal
Revenue Code of 1954.
(a)
An organization that qualifies as a religious
organization as provided by Subsection (c)
of this section is entitled to an exemption
from taxation of:
(1)
the real property that is owned by the religious
organization, is used primarily as a place
of regular religious worship, and is reasonably
necessary for engaging in religious worship;
(2)
the tangible personal property that is owned
by the religious organization and is reasonably
necessary for engaging in worship at the
place of worship specified in Subdivision
(1) of this subsection;
(3)
the real property that is owned by the religious
organization and is reasonably necessary
for use as a residence (but not more than
one acre of land for each residence) if the
property:
(A)
is used exclusively as a residence for those
individuals whose principal occupation is
to serve in the clergy of the religious organization;
and
(B)
produces no revenue for the religious organization;
(4)
the tangible personal property that is owned
by the religious organization and is reasonably
necessary for use of the residence specified
by Subdivision (3) of this subsection; and
(5)
the real property owned by the religious
organization consisting of:
(A)
an incomplete improvement that is under active
construction or other physical preparation
and that is designed and intended to be used
by the religious organization as a place
of regular religious worship when complete;
and
(B)
the land on which the incomplete improvement
is located that will be reasonably necessary
for the religious organization's use of the
improvement as a place of regular religious
worship.
(b)
An organization that qualifies as a religious
organization as provided by Subsection (c)
of this section is entitled to an exemption
from taxation of those endowment funds the
organization owns that are used exclusively
for the support of the religious organization
and are invested exclusively in bonds, mortgages,
or property purchased at a foreclosure sale
for the purpose of satisfying or protecting
the bonds or mortgages. However, foreclosure-sale
property that is held by an endowment fund
for longer than the two-year period immediately
following purchase at the foreclosure sale
is not exempt from taxation.
(c)
To qualify as a religious organization for
the purposes of this section, an organization
(whether operated by an individual, as a
corporation, or as an association) must:
(1)
be organized and operated primarily for the
purpose of engaging in religious worship
or promoting the spiritual development or
well-being of individuals;
(2)
be operated in a way that does not result
in accrual of distributable profits, realization
of private gain resulting from payment of
compensation in excess of a reasonable allowance
for salary or other compensation for services
rendered, or realization of any other form
of private gain; and
(3)
by charter, bylaw, or other regulation adopted
by the organization to govern its affairs:
(A)
pledge its assets for use in performing the
organization's religious functions; and
(B)
direct that on discontinuance of the organization
by dissolution or otherwise the assets are
to be transferred to this state or to a charitable,
education
