Bill > HB4750

This bill modifies the Texas Tax Code to expand the definition of charitable organizations eligible for property tax exemptions, specifically focusing on cooperative housing. The bill amends Section 11.18(d) to broaden the criteria for housing-related charitable organizations by changing language about cooperative housing. The key modification allows cooperative housing organizations to be exempt from ad valorem (property) taxation if they: are federally tax-exempt under Section 501(c)(3), have membership open to all individuals (not just students) rather than limited to those chosen by current members, are governed by their members, and have members sharing responsibility for managing the housing. This change effectively expands the eligibility for property tax exemptions to a wider range of cooperative housing organizations beyond just those associated with educational institutions. The bill will apply to ad valorem tax years beginning on or after its effective date of January 1, 2026, providing nonprofit cooperative housing groups with potentially significant tax benefits by broadening the existing charitable organization tax exemption provisions.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4750