85R3317 TJB-D
	By: Lozano	H.B. No. 845

	A BILL TO BE ENTITLED
	AN ACT
	relating to the authority of the governing body of a taxing unit to
	exempt from ad valorem taxation mineral interests owned by
	nonprofit corporations organized for the exclusive purpose of
	generating income for certain charitable nonprofit corporations
	through the ownership, lease, and management of real property.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
	adding Section 11.186 to read as follows:
	Sec. 11.186.  MINERAL INTERESTS OWNED BY CERTAIN NONPROFIT
	CORPORATIONS. (a) A nonprofit corporation is entitled to an
	exemption from taxation by a taxing unit of the mineral interests
	owned by the nonprofit corporation if:
	(1)  the nonprofit corporation:
	(A)  is governed by the Texas Nonprofit
	Corporation Law, as described by Section 1.008, Business
	Organizations Code; and
	(B)  is organized for the exclusive purpose of
	generating income for a specific charitable nonprofit corporation
	through its ownership, lease, and management of real property,
	including buildings, land, and mineral interests;
	(2)  the charitable nonprofit corporation:
	(A)  is governed by the Texas Nonprofit
	Corporation Law, as described by Section 1.008, Business
	Organizations Code;
	(B)  is organized exclusively to perform
	religious and charitable purposes;
	(C)  is engaged exclusively in providing housing,
	counseling, training, spiritual aid, and related services to
	children and families in need;
	(D)  does not charge a fee for the provision of a
	service; and
	(E)  does not accept or receive money from a
	governmental entity; and
	(3)  the exemption is adopted by the governing body of
	the taxing unit in the manner provided by law for official action by
	the governing body.
	(b)  A nonprofit corporation described by Subsection (a)(1)
	or (2) may not be operated in a way that results in:
	(1)  the accrual of distributable profits;
	(2)  the realization of private gain resulting from
	payment of compensation in excess of a reasonable allowance for
	salary or other compensation for services rendered; or
	(3)  the realization of any other form of private gain.
	(c)  An exemption under this section adopted by the governing
	body of a taxing unit applies to:
	(1)  the tax year:
	(A)  in which the exemption is adopted by the
	governing body if officially adopted before April 15; or
	(B)  immediately following the tax year in which
	the exemption is adopted by the governing body if officially
	adopted on or after April 15; and
	(2)  each tax year following that tax year unless and
	until repealed in the manner provided by Subsection (d).
	(d)  The governing body of a taxing unit may repeal an
	exemption adopted under this section in the manner provided by law
	for official action by the governing body.
	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, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.186, 11.19,
	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
	11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, 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, 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.  Section 403.302(d), Government Code, is amended
	to read as follows:
	(d)  For the purposes of this section, "taxable value" means
	the market value of all taxable property less:
	(1)  the total dollar amount of any residence homestead
	exemptions lawfully granted under Section 11.13(b) or (c), Tax
	Code, in the year that is the subject of the study for each school
	district;
	(2)  one-half of the total dollar amount of any
	residence homestead exemptions granted under Section 11.13(n), Tax
	Code, in the year that is the subject of the study for each school
	district;
	(3)  the total dollar amount of any exemptions granted
	before May 31, 1993, within a reinvestment zone under agreements
	authorized by Chapter 312, Tax Code;
	(4)  subject to Subsection (e), the total dollar amount
	of any captured appraised value of property that:
	(A)  is within a reinvestment zone created on or
	before May 31, 1999, or is proposed to be included within the
	boundaries of a reinvestment zone as the boundaries of the zone and
	the proposed portion of tax increment paid into the tax increment
	fund by a school district are described in a written notification
	provided by the municipality or the board of directors of the zone
	to the governing bodies of the other taxing units in the manner
	provided by former Section 311.003(e), Tax Code, before May 31,
	1999, and within the boundaries of the zone as those boundaries
	existed on September 1, 1999, including subsequent improvements to
	the property regardless of when made;
	(B)  generates taxes paid into a tax increment
	fund created under Chapter 311, Tax Code, under a reinvestment zone
	financing plan approved under Section 311.011(d), Tax Code, on or
	before September 1, 1999; and
	(C)  is eligible for tax increment financing under
	Chapter 311, Tax Code;
	(5)  the total dollar amount of any captured appraised
	value of property that:
	(A)  is within a reinvestment zone:
	(i)  created on or before December 31, 2008,
	by a municipality with a population of less than 18,000; and
	(ii)  the project plan for which includes
	the alteration, remodeling, repair, or reconstruction of a
	structure that is included on the National Register of Historic
	Places and requires that a portion of the tax increment of the zone
	be used for the improvement or construction of related facilities
	or for affordable housing;
	(B)  generates school district taxes that are paid
	into a tax increment fund created under Chapter 311, Tax Code; and
	(C)  is eligible for tax increment financing under
	Chapter 311, Tax Code;
	(6)  the total dollar amount of any exemptions granted
	under Section 11.186, 11.251, or 11.253, Tax Code;
	(7)  the difference between the comptroller's estimate
	of the market value and the productivity value of land that
	qualifies for appraisal on the basis of its productive capacity,
	except that the productivity value estimated by the comptroller may
	not exceed the fair market value of the land;
	(8)  the portion of the appraised value of residence
	homesteads of individuals who receive a tax limitation under
	Section 11.26, Tax Code, on which school district taxes are not
	imposed in the year that is the subject of the study, calculated as
	if the residence homesteads were appraised at the full value
	required by law;
	(9)  a portion of the market value of property not
	otherwise fully taxable by the district at market value because of:
	(A)  action required by statute or the
	constitution of this state, other than Section 11.311, Tax Code,
	that, if the tax rate adopted by the district is applied to it,
	produces an amount equal to the difference between the tax that the
	district would have imposed on the property if the property were
	fully taxable at market value and the tax that the district is
	actually authorized to impose on the property, if this subsection
	does not otherwise require that portion to be deducted; or
	(B)  action taken by the district under Subchapter
	B or C, Chapter 313, Tax Code, before the expiration of the
	subchapter;
	(10)  the market value of all tangible personal
	property, other than manufactured homes, owned by a family or
	individual and not held or used for the production of income;
	(11)  the appraised value of property the collection of
	delinquent taxes on which is deferred under Section 33.06, Tax
	Code;
	(12)  the portion of the appraised value of property
	the collection of delinquent taxes on which is deferred under
	Section 33.065, Tax Code; and
	(13)  the amount by which the market value of a
	residence homestead to which Section 23.23, Tax Code, applies
	exceeds the appraised value of that property as calculated under
	that section.
	SECTION 4.  This Act applies only to ad valorem taxes imposed
	for a tax year that begins on or after the effective date of this
	Act.
	SECTION 5.  This Act takes effect January 1, 2018, but only
	if the constitutional amendment proposed by the 85th Legislature,
	Regular Session, 2017, authorizing the governing body of a
	political subdivision to exempt from ad valorem taxation mineral
	interests owned by nonprofit corporations organized for the
	exclusive purpose of generating income for certain charitable
	nonprofit corporations through the ownership, lease, and
	management of real property is approved by the voters. If that
	amendment is not approved by the voters, this Act has no effect.