Bill > HB4240

This bill amends the Texas Tax Code to expand the property tax exemption for charitable organizations by adding a new qualifying charitable function. Specifically, the bill adds a 27th category of charitable activities that allows organizations providing financial support for medical care at certain higher education institutions to receive a property tax exemption. This means that charitable organizations that support medical care programs at specific colleges or universities (as defined in Section 63.101 of the Education Code) can now be exempt from paying property taxes on their buildings and tangible personal property. The tax exemption applies to properties owned by the charitable organization and used exclusively for charitable purposes. The changes will take effect for ad valorem (property) tax years beginning on or after January 1, 2026, giving local tax authorities and charitable organizations time to prepare for the new exemption. This modification continues Texas's existing approach of providing tax benefits to organizations that contribute to public welfare through specific types of charitable services.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4240