HB3064 - Relating to the exemption of tangible personal property from ad valorem taxation; making conforming changes.

  89R630 RDS-D     By: Metcalf H.B. No. 3064       A BILL TO BE ENTITLED   AN ACT   relating to the exemption of tangible personal property from ad   valorem taxation; making conforming changes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 6.24(b), Tax Code, is amended to read as   follows:          (b)  The commissioners court with the approval of the county   assessor-collector may contract as provided by the Interlocal   Cooperation Act with the governing body of another taxing unit in   the county or with the board of directors of the appraisal district   for the other taxing unit or the district to perform duties relating   to the assessment or collection of taxes for the county. If a   county contracts to have its taxes assessed and collected by   another taxing unit or by the appraisal district, [ except as   provided by Subsection (c), ] the contract shall require the other   taxing unit or the district to assess and collect all taxes the   county is required to assess and collect.          SECTION 2.  The heading to Section 11.01, Tax Code, is   amended to read as follows:          Sec. 11.01.  REAL [ AND TANGIBLE PERSONAL ] PROPERTY.          SECTION 3.  Section 11.01(a), Tax Code, is amended to read as   follows:          (a)  All real [ and tangible personal ] property that this   state has jurisdiction to tax is taxable unless exempt by law.          SECTION 4.  Subchapter A, Chapter 11, Tax Code, is amended by   adding Section 11.015 to read as follows:           Sec.   11.015.     TANGIBLE PERSONAL PROPERTY. (a) Tangible   personal property is not taxable for a tax year that begins on or   after January 1, 2026.           (b)     On and after January 1, 2026, a provision of this code or   another law that would otherwise apply to the taxation of tangible   personal property for a tax year that begins on or after that date   has no effect for that tax year.          SECTION 5.  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;                (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)  if the charitable organization is described by   Subsection (d)(1), (2), (3)(A)(ii), (5), (8), (13), (15), or (19),   the real property owned by the charitable organization consisting   of an interest in a mineral in place, including a royalty interest,   provided that the interest:                      (A)  is not severed from the surface estate; or                      (B)  was donated to the charitable organization by   the previous owner of the interest.          SECTION 6.  Section 11.181(c), Tax Code, is amended to read   as follows:          (c)  An organization entitled to an exemption under   Subsection (a) is also entitled to an exemption from taxation of any   building [ or tangible personal property ] the organization owns and   uses in the administration of its acquisition, building, repair, or   sale of property. To qualify for an exemption under this   subsection, property must be used exclusively by the charitable   organization, except that another individual or organization may   use the property for activities incidental to the charitable   organization's use that benefit the beneficiaries of the charitable   organization.          SECTION 7.  Section 11.182(f), Tax Code, is amended to read   as follows:          (f)  An organization entitled to an exemption under   Subsection (b) is also entitled to an exemption from taxation of any   building [ or tangible personal property ] the organization owns and   uses in the administration of its acquisition, building, repair,   sale, or rental of property. To qualify for an exemption under this   subsection, property must be used exclusively by the organization,   except that another person may use the property for activities   incidental to the organization's use that benefit the beneficiaries   of the organization.          SECTION 8.  Section 11.1827(d), Tax Code, is amended to read   as follows:          (d)  A community land trust entitled to an exemption from   taxation by a taxing unit under Subsection (b) is also entitled to   an exemption from taxation by the taxing unit of any real [ or   tangible personal ] property the trust owns and uses in the   administration of its acquisition, construction, repair, sale, or   leasing of property.  To qualify for an exemption under this   subsection, property must be used exclusively by the trust, except   that another person may use the property for activities incidental   to the trust's use that benefit the beneficiaries of the trust.          SECTION 9.  Section 11.184(c), Tax Code, is amended to read   as follows:          (c)  A qualified charitable organization is entitled to an   exemption from taxation of:                (1)  the buildings and other real property [ and the   tangible personal property ] that:                      (A)  are owned by the organization; and                      (B)  except as permitted by Subsection (d), are   used exclusively by the organization and other organizations   eligible for an exemption from taxation under this section or   Section 11.18; and                (2)  the real property owned by the 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 the organization and other organizations eligible   for an exemption from taxation under this section or Section 11.18;   and                      (B)  the land on which the incomplete improvement   is located that will be reasonably necessary for the use of the   improvement by the organization and other organizations eligible   for an exemption from taxation under this section or Section 11.18.          SECTION 10.  Section 11.185(c), Tax Code, is amended to read   as follows:          (c)  An organization entitled to an exemption under   Subsection (a) is also entitled to an exemption from taxation of any   building [ or tangible personal property ] the organization owns and   uses in the administration of its acquisition, building, repair, or   sale of property. To qualify for an exemption under this   subsection, property must be used exclusively by the charitable   organization, except that another individual or organization may   use the property for activities incidental to the charitable   organization's use that benefit the beneficiaries of the charitable   organization.          SECTION 11.  Sections 11.20(a), (d), (f), (g), (h), (j), and   (k), Tax Code, are amended to read as follows:          (a)  An organization that qualifies as a religious   organization as provided by Subsection (c) is entitled to an   exemption from taxation of:                (1)  the real property that is owned by the religious   organization, is used primarily as a place of regular religious   worship, and is reasonably necessary for engaging in religious   worship;                (2)  [ the tangible personal property that is owned by   the religious organization and is reasonably necessary for engaging   in worship at the place of worship specified in Subdivision (1);                [ (3) ]  the real property that is owned by the religious   organization and is reasonably necessary for use as a residence   (but not more than one acre of land for each residence) if the   property:                      (A)  is used exclusively as a residence for those   individuals whose principal occupation is to serve in the clergy of   the religious organization; and                      (B)  produces no revenue for the religious   organization;                 (3)  [ (4)     the tangible personal property that is owned   by the religious organization and is reasonably necessary for use   of the residence specified by Subdivision (3);                [ (5) ]  the real property owned by the religious   organization consisting of:                      (A)  an incomplete improvement that is under   active construction or other physical preparation and that is   designed and intended to be used by the religious organization as a   place of regular religious worship when complete; and                      (B)  the land on which the incomplete improvement   is located that will be reasonably necessary for the religious   organization's use of the improvement as a place of regular   religious worship;                 (4)  [ (6) ]  the land that the religious organization   owns for the purpose of expansion of the religious organization's   place of regular religious worship or construction of a new place of   regular religious worship if:                      (A)  the religious organization qualifies other   property, including a portion of the same tract or parcel of land,   owned by the organization for an exemption under Subdivision (1) or   (3) [ (5) ]; and                [Text truncated for display. 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