Bill Text: TX HB456 | 2023-2024 | 88th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to an exemption from ad valorem taxation of certain interests in a mineral in place owned by certain charitable organizations.

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Passed) 2023-06-12 - Effective on 1/1/24 [HB456 Detail]

Download: Texas-2023-HB456-Engrossed.html

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88R3245 LHC-D
By: Craddick, Geren, Cook, Burrows, Rose H.B. No. 456

A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of certain
royalty interests owned by a charitable organization.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.18(a), Tax Code, is amended to read as
follows:
(a) An organization that qualifies as a charitable
organization as provided by this section is entitled to an
exemption from taxation of:
(1) the buildings and tangible personal property that:
(A) are owned by the charitable organization; and
(B) except as permitted by Subsection (b), are
used exclusively by qualified charitable organizations; [and]
(2) the real property owned by the charitable
organization consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used
exclusively by qualified charitable organizations; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement by qualified charitable organizations; and
(3) a royalty interest, as defined by Section 201.001,
owned by the organization.
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, 2024.