HB4240 - Relating to the exemption from ad valorem taxation of property of a charitable organization that provides financial support for medical care at certain institutions of higher education.

  89R13864 CS-F     By: Vasut, Leo Wilson, Paul H.B. No. 4240       A BILL TO BE ENTITLED   AN ACT   relating to the exemption from ad valorem taxation of property of a   charitable organization that provides financial support for   medical care at certain institutions of higher education.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 11.18(a) and (d), Tax Code, are 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), or (27), 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.          (d)  A charitable organization must be organized exclusively   to perform religious, charitable, scientific, literary, or   educational purposes and, except as permitted by Subsections (h)   and (l), engage exclusively in performing one or more of the   following charitable functions:                (1)  providing medical care without regard to the   beneficiaries' ability to pay, which in the case of a nonprofit   hospital or hospital system means providing charity care and   community benefits in accordance with Section 11.1801;                (2)  providing support or relief to orphans, delinquent   or dependent children in need of residential care, children with   disabilities in need of residential care, abused or battered   spouses or children in need of temporary shelter, the impoverished,   or victims of natural disaster without regard to the beneficiaries'   ability to pay;                (3)  providing support without regard to the   beneficiaries' ability to pay to:                      (A)  elderly persons, including the provision of:                            (i)  recreational or social activities; and                            (ii)  facilities designed to address the   special needs of elderly persons; or                      (B)  persons with disabilities, including   training and employment:                            (i)  in the production of commodities; or                            (ii)  in the provision of services under 41   U.S.C. Sections 8501-8506;                (4)  preserving a historical landmark or site;                (5)  promoting or operating a museum, zoo, library,   theater of the dramatic or performing arts, or symphony orchestra   or choir;                (6)  promoting or providing humane treatment of   animals;                (7)  acquiring, storing, transporting, selling, or   distributing water for public use;                (8)  answering fire alarms and extinguishing fires with   no compensation or only nominal compensation to the members of the   organization;                (9)  promoting the athletic development of boys or   girls under the age of 18 years;                (10)  preserving or conserving wildlife;                (11)  promoting educational development through loans   or scholarships to students;                (12)  providing halfway house services pursuant to a   certification as a halfway house by the parole division of the Texas   Department of Criminal Justice;                (13)  providing permanent housing and related social,   health care, and educational facilities for persons who are 62   years of age or older without regard to the residents' ability to   pay;                (14)  promoting or operating an art gallery, museum, or   collection, in a permanent location or on tour, that is open to the   public;                (15)  providing for the organized solicitation and   collection for distributions through gifts, grants, and agreements   to nonprofit charitable, education, religious, and youth   organizations that provide direct human, health, and welfare   services;                (16)  performing biomedical or scientific research or   biomedical or scientific education for the benefit of the public;                (17)  operating a television station that produces or   broadcasts educational, cultural, or other public interest   programming and that receives grants from the Corporation for   Public Broadcasting under 47 U.S.C. Section 396, as amended;                (18)  providing housing for low-income and   moderate-income families, for unmarried individuals 62 years of age   or older, for individuals with disabilities, and for families   displaced by urban renewal, through the use of trust assets that are   irrevocably and, pursuant to a contract entered into before   December 31, 1972, contractually dedicated on the sale or   disposition of the housing to a charitable organization that   performs charitable functions described by Subdivision (9);                (19)  providing housing and related services to persons   who are 62 years of age or older in a retirement community, if the   retirement community provides independent living services,   assisted living services, and nursing services to its residents on   a single campus:                      (A)  without regard to the residents' ability to   pay; or                      (B)  in which at least four percent of the   retirement community's combined net resident revenue is provided in   charitable care to its residents;                (20)  providing housing on a cooperative basis to   students of an institution of higher education if:                      (A)  the organization is exempt from federal   income taxation under Section 501(a), Internal Revenue Code of   1986, as amended, by being listed as an exempt entity under Section   501(c)(3) of that code;                      (B)  membership in the organization is open to all   students enrolled in the institution and is not limited to those   chosen by current members of the organization;                      (C)  the organization is governed by its members;   and                      (D)  the members of the organization share the   responsibility for managing the housing;                (21)  acquiring, holding, and transferring unimproved   real property under an urban land bank demonstration program   established under Chapter 379C, Local Government Code, as or on   behalf of a land bank;                (22)  acquiring, holding, and transferring unimproved   real property under an urban land bank program established under   Chapter 379E, Local Government Code, as or on behalf of a land bank;                (23)  providing housing and related services to   individuals who:                      (A)  are unaccompanied and homeless and have a   disabling condition; and                      (B)  have been continuously homeless for a year or   more or have had at least four episodes of homelessness in the   preceding three years;                (24)  operating a radio station that broadcasts   educational, cultural, or other public interest programming,   including classical music, and that in the preceding five years has   received or been selected to receive one or more grants from the   Corporation for Public Broadcasting under 47 U.S.C. Section 396, as   amended;                (25)  providing, without regard to the beneficiaries'   ability to pay, tax return preparation services and assistance with   other financial matters; [ or ]                (26)  providing services related to planning for the   placement of or placing children in foster or adoptive homes or   providing support or relief to women who are or may be pregnant and   who are considering placing their unborn children for adoption ; or                 (27)     providing financial support for medical care at   an institution of higher education described by Section 63.101,   Education Code .          SECTION 2.  The changes in law made by this Act apply only to   an ad valorem tax year that begins on or after the effective date of   this Act.          SECTION 3.  This Act takes effect January 1, 2026.