Bill > HB2525

This bill modifies the Texas Tax Code to clarify and expand property tax exemptions for charitable organizations providing housing and related services to people aged 62 and older. Specifically, the bill introduces two key modifications to existing tax law: first, it allows charitable organizations to qualify for a property tax exemption if they provide housing and services to seniors, either without regard to residents' ability to pay or by providing at least 4% of their net resident revenue as charitable housing and services. Second, the bill adds new requirements for qualifying for this exemption, stating that an organization must either have been in existence for at least 20 years or be affiliated with an organization that meets that criteria. The bill also defines "charitable housing and services" to include housing in various care facilities and services such as ministerial support, health care, social services, and educational services for seniors in financial need. These changes will apply to ad valorem (property) tax years beginning on or after the bill's effective date of January 1, 2026, and are designed to provide more clarity and flexibility for charitable organizations serving senior populations while ensuring some longstanding commitment to charitable work.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2525