Bill > SB2956

This bill modifies the tax exemption rules for charitable organizations by changing how property tax exemptions are granted and maintained. Previously, tax exemptions for charitable organizations expired after five years and required reapplication, but now the exemption will continue until the organization no longer owns the property or no longer qualifies based on certain factors. The bill requires organizations to notify tax authorities within 30 days of significant changes, such as selling the exempt property or losing their 501(c)(3) tax-exempt status. Additionally, organizations whose exemptions expired before September 1, 2025, can automatically have their exemptions reinstated if they still own the property, have a valid determination letter, and submit a written request with proof of previous exemption. If an organization paid taxes during the period when their exemption should have been in effect, they are entitled to a refund. The changes aim to simplify the process for charitable organizations to maintain their property tax exemptions and provide a path for retroactive reinstatement of expired exemptions. The bill will take effect on January 1, 2026.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2956