SB2973 - 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.

  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.