Bill Text: TX HB382 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to the exemption from ad valorem taxation of real property leased to and used by certain schools.
Spectrum: Moderate Partisan Bill (Republican 7-2)
Status: (Introduced - Dead) 2017-04-26 - Committee report sent to Calendars [HB382 Detail]
Download: Texas-2017-HB382-Comm_Sub.html
85R13673 CJC-F | |||
By: Murphy, Frank, Villalba, Wu, Raymond, | H.B. No. 382 | ||
et al. | |||
Substitute the following for H.B. No. 382: | |||
By: Darby | C.S.H.B. No. 382 |
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relating to the exemption from ad valorem taxation of real property | ||
leased to and used by certain schools. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by | ||
adding Section 11.211 to read as follows: | ||
Sec. 11.211. REAL PROPERTY LEASED TO CERTAIN SCHOOLS. (a) | ||
A person is entitled to an exemption from taxation of the portion of | ||
the real property that the person owns and leases to an | ||
open-enrollment charter school authorized by Subchapter D, Chapter | ||
12, Education Code, that is qualified as provided by Section | ||
11.21(d) of this code if: | ||
(1) the real property is used exclusively by the | ||
school for educational functions; | ||
(2) the real property is reasonably necessary for the | ||
operation of the school; | ||
(3) the owner certifies by affidavit to the school | ||
that the rent for the lease of the real property will be reduced by | ||
an amount equal to the amount by which the taxes on the property are | ||
reduced as a result of the exemption; | ||
(4) the owner provides the school with a disclosure | ||
document stating the amount by which the taxes on the real property | ||
are reduced as a result of the exemption and the method the owner | ||
will implement to ensure that the rent charged for the lease of the | ||
property fully reflects that reduction; and | ||
(5) the rent charged for the lease of the real property | ||
reflects the reduction in the amount of taxes on the property | ||
resulting from the exemption through a monthly or annual credit | ||
against the rent. | ||
(b) Section 25.07 does not apply to a leasehold interest in | ||
property for which the owner receives an exemption under this | ||
section. | ||
SECTION 2. This Act applies only to ad valorem taxes imposed | ||
for a tax year beginning on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2018, but only | ||
if the constitutional amendment proposed by the 85th Legislature, | ||
Regular Session, 2017, authorizing the legislature to exempt from | ||
ad valorem taxation real property leased to certain schools | ||
organized and operated primarily for the purpose of engaging in | ||
educational functions is approved by the voters. If that amendment | ||
is not approved by the voters, this Act has no effect. |