HB4752 - Relating to the eligibility of certain charitable organizations to receive an exemption from ad valorem taxation.

  89R25310 JBD-F     By: Landgraf H.B. No. 4752       A BILL TO BE ENTITLED   AN ACT   relating to the eligibility of certain charitable organizations to   receive an exemption from ad valorem taxation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 11.18, Tax Code, is amended by amending   Subsection (g) and adding Subsection (g-1) to read as follows:          (g)  A charitable organization that performs a charitable   function specified by Subsection (d)(15) must:                (1)  [ be affiliated with a state or national   organization that authorizes, approves, or sanctions volunteer   charitable fundraising organizations;                [ (2) ]  qualify for exemption under Section 501(c)(3),   Internal Revenue Code of 1986, as amended;                 (2)  [ (3) ]  be governed by a volunteer board of   directors; and                 (3)  [ (4) ]  distribute contributions to at least five   other associations to be used for general charitable purposes, with   all recipients meeting the following criteria:                      (A)  be governed by a volunteer board of   directors;                      (B)  qualify for exemption under Section   501(c)(3), Internal Revenue Code of 1986, as amended;                      (C)  receive a majority of annual revenue from   private or corporate charitable gifts and government agencies; and                      (D)  provide services without regard to the   ability of persons receiving the services to pay for the services.           (g-1)     A charitable organization that otherwise meets the   requirements of Subsections (d)(15) and (g) is not ineligible for   an exemption under Subsection (d)(15) because the organization also   distributes contributions to public institutions of higher   education.          SECTION 2.  The change in law made by this Act applies 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.