HBA-JRA H.B. 1978 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1978
By: Kuempel
Ways & Means
3/18/1999
Introduced



BACKGROUND AND PURPOSE 

Section 11.18 of the Tax Code currently provides an exemption from ad
valorem taxation for charitable organizations.  However, the description of
a charitable organization designed to support elderly persons is
sufficiently narrow that some counties have interpreted it to mean that the
charitable organization must be designed exclusively to provide support to
qualify for an exemption. H.B. 1978 includes senior citizens centers that
provide many kinds of services to the elderly in the description of a
charitable organization that qualifies for an exemption from ad valorem
taxation. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 11.18, Tax Code, by amending Subsection (d) and
adding Subsection (l), as follows: 

(d)  Provides that Subsection (l) of this section, which exempts charitable
organizations from taxation of buildings and tangible personal property,
provides an exception to this subsection. Includes the provision of
recreational or social activities and facilities designed to address the
special needs of elderly persons among the acceptable purposes and
functions of charitable organizations.  Makes conforming changes. 

(l)  Provides that a charitable organization that provides recreational or
social activities and facilities designed to address the special needs of
elderly persons must engage primarily in performing those functions, but is
authorized to engage in other activities that support or are related to its
charitable functions. 

SECTION 2.  (a)  Provides that this Act takes effect as provided by this
section only if the constitutional amendment proposed by the 76th
Legislature, Regular Session, 1999, to authorize the exemption of property
of institutions of public charity, as defined by general law, from ad
valorem taxation, is approved by the voters. 

(b)  Effective date: January 1, 2000.
       Makes application of this Act prospective.

SECTION 3.  Emergency clause.