Bill Text: TX SB1145 | 2023-2024 | 88th Legislature | Enrolled


Bill Title: Relating to a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Passed) 2023-05-29 - See remarks for effective date [SB1145 Detail]

Download: Texas-2023-SB1145-Enrolled.html
 
 
  S.B. No. 1145
 
 
 
 
AN ACT
  relating to a local option exemption from ad valorem taxation by a
  county or municipality of all or part of the appraised value of real
  property used to operate a child-care facility.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.36 to read as follows:
         Sec. 11.36.  CHILD-CARE FACILITIES. (a)  In this section:
               (1)  "Child-care facility" means a facility licensed by
  the Health and Human Services Commission to provide assessment,
  care, training, education, custody, treatment, or supervision for a
  child who is not related by blood, marriage, or adoption to the
  owner or operator of the facility, for all or part of the 24-hour
  day, whether or not the facility is operated for profit or charges
  for the services it offers.
               (2)  "Qualifying child-care facility" means a
  child-care facility:
                     (A)  the owner or operator of which participates
  in the Texas Workforce Commission's Texas Rising Star Program as
  described by Section 2308.3155, Government Code, for that facility;
  and
                     (B)  at which at least 20 percent of the total
  number of children enrolled at the facility receive subsidized
  child-care services provided through the child-care services
  program administered by the Texas Workforce Commission.
         (b)  Subject to Subsection (d), if the governing body of a
  county or municipality in the manner required by law for official
  action by the governing body adopts the exemption, a person is
  entitled to an exemption from taxation by the county or
  municipality of all or part of the appraised value of:
               (1)  the real property the person owns and operates as a
  qualifying child-care facility; or
               (2)  the portion of the real property that the person
  owns and leases to a person who uses the property to operate a
  qualifying child-care facility.
         (c)  The governing body of a county or municipality may adopt
  the exemption authorized by this section as a percentage of the
  appraised value of the property.  The percentage specified by the
  governing body may not be less than 50 percent.
         (d)  To qualify for the exemption authorized by this section,
  the property must be:
               (1)  except as provided by Subsection (e), used
  exclusively to provide developmental and educational services for
  children attending the child-care facility; and
               (2)  reasonably necessary for the operation of the
  child-care facility. 
         (e)  The use of exempt property for functions other than
  providing developmental and educational services for children
  attending the child-care facility located on the property does not
  result in the loss of an exemption authorized by this section if
  those other functions are incidental to the use of the property for
  providing those services to those children and benefit:
               (1)  those children; or
               (2)  the staff and faculty of the facility.
         (f)  A person who claims an exemption under Subsection (b)(2)
  must include with the application for the exemption an affidavit
  certifying to the chief appraiser for the appraisal district that
  appraises the property that is the subject of the application that:
               (1)  the person has provided to the child-care facility
  to which the property is leased a disclosure document stating the
  amount by which the taxes on the property are reduced as a result of
  the exemption and the method the person will implement to ensure
  that the rent charged for the lease of the property fully reflects
  that reduction;
               (2)  the rent charged for the lease of the 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; and
               (3)  the person does not charge rent for the lease of
  the property in an amount that exceeds:
                     (A)  for property that consists of space in a
  commercial property, the rent charged by the person to other
  tenants of the commercial property for similar space; or
                     (B)  for property other than property described by
  Paragraph (A), the average rent charged for comparable rental
  property.
         (g)  Notwithstanding any other provision of this section, a
  person may not claim an exemption under Subsection (b)(2) for
  property:
               (1)  for which the person claims an exemption under
  Section 11.13; or
               (2)  any part of which is leased by the person to
  another person for use as a principal residence.
         (h)  Property is not ineligible for an exemption under this
  section if a portion of the property is used for functions other
  than those described by Subsections (d) and (e). However, the
  exemption does not apply to the value of the portion of the property
  that is used for those other functions.
         (i)  Section 25.07 does not apply to a leasehold interest in
  property for which the owner receives an exemption under this
  section.
         (j)  The comptroller may adopt rules and forms necessary for
  the administration of this section.
         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), 11.231,
  11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or
  11.36, 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 ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 4.  This Act takes effect January 1, 2024, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, authorizing a local option exemption from ad
  valorem taxation by a county or municipality of all or part of the
  appraised value of real property used to operate a child-care
  facility is approved by the voters. If that amendment is not
  approved by the voters, this Act has no effect.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1145 passed the Senate on
  May 1, 2023, by the following vote:  Yeas 25, Nays 6.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1145 passed the House on
  May 16, 2023, by the following vote:  Yeas 109, Nays 33,
  one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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