HB1035 - Relating to the contents of an affidavit required to be included with an application for an exemption from ad valorem taxation of all or part of the appraised value of real property used to operate a child-care facility.

  89R20799 CJC-F     By: Talarico, Button H.B. No. 1035       A BILL TO BE ENTITLED   AN ACT   relating to the contents of an affidavit required to be included   with an application for an exemption from ad valorem taxation of all   or part of the appraised value of real property used to operate a   child-care facility.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 11.36(a), Tax Code, as added by Chapter   281 (S.B. 1145), Acts of the 88th Legislature, Regular Session,   2023, is amended by amending Subdivision (2) and adding Subdivision   (3) to read as follows:                (2)   "Net lease" means a lease under which the lessee   pays, in addition to a base rental amount, the taxes imposed on the   property that is the subject of the lease. The term includes a   double net lease and a triple net lease.                 (3)   "Qualifying child-care facility" means a   child-care facility:                      (A)  the owner or operator of which participates   in the Texas Workforce Commission's Texas Rising Star Program as   described by Section 2308.3155, Government Code, for that facility;   and                      (B)  at which at least 20 percent of the total   number of children enrolled at the facility receive subsidized   child-care services provided through the child-care services   program administered by the Texas Workforce Commission.          SECTION 2.  Section 11.36(f), Tax Code, as added by Chapter   281 (S.B. 1145), Acts of the 88th Legislature, Regular Session,   2023, is amended to read as follows:          (f)  A person who claims an exemption under Subsection (b)(2)   must include with the application for the exemption an affidavit   certifying to the chief appraiser for the appraisal district that   appraises the property that is the subject of the application that:                (1)   either:                       (A)   the person has provided to the child-care   facility to which the property is leased a disclosure document   stating the amount by which the taxes on the property are reduced as   a result of the exemption and the method the person will implement   to ensure that the rent charged for the lease of the property fully   reflects that reduction; or                       (B)     the property is subject to a net lease and the   child-care facility to which the property is leased is responsible   for paying the taxes imposed on the property;                (2)  the rent charged for the lease of the property   reflects the reduction in the amount of taxes on the property   resulting from the exemption , either through a monthly or annual   credit against the rent or, if applicable, by operation of the net   lease to which the property is subject ; and                (3)  the person does not charge rent for the lease of   the property in an amount that exceeds:                      (A)  for property that consists of space in a   commercial property, the rent charged by the person to other   tenants of the commercial property for similar space; or                      (B)  for property other than property described by   Paragraph (A), the average rent charged for comparable rental   property.          SECTION 3.  The change in law made by this Act applies only   to an application for an exemption from ad valorem taxation under   Section 11.36, Tax Code, as added by Chapter 281 (S.B. 1145), Acts   of the 88th Legislature, Regular Session, 2023, that is filed on or   after the effective date of this Act. An application for an   exemption from ad valorem taxation under that section that was   filed before the effective date of this Act is covered by the law in   effect on the date the application was filed, and the former law is   continued in effect for that purpose.          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 immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.