Bill > HB5478

This bill modifies the Texas Tax Code to provide clearer rules for property tax exemptions for charitable organizations. Specifically, the bill changes how and when tax exemptions for properties owned by charitable organizations are granted and maintained. Under the new provisions, an exemption will automatically expire if the organization no longer owns the property or if the state comptroller determines the organization no longer qualifies based on certain factors. Organizations receiving such an exemption must now notify the comptroller and local chief appraiser within 30 days of key changes, such as selling the property or losing their federal tax-exempt status under Section 501(c)(3). The bill also provides an automatic reinstatement provision for organizations with exemptions that expired before September 1, 2025, allowing them to regain their exemption if they still own the property and have a valid determination letter. Additionally, if an organization's exemption was previously revoked, they will not owe back taxes for the period between the exemption's expiration and reinstatement, and any taxes paid during that time will be refunded. The bill will take effect on January 1, 2026, and is intended to streamline the process for charitable organizations seeking property tax exemptions.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5478