Bill > SB2973

This bill creates a property tax exemption for nonprofit organizations in counties with populations of 3.3 million or more, specifically for properties used to promote agriculture, support youth, and provide educational support in the community. The exemption applies to all real and personal property owned by a nonprofit corporation organized exclusively for charitable, educational, and scientific purposes. Importantly, the property can have some incidental use for other purposes without losing the tax exemption, as long as any revenue from those uses benefits the organization's charitable mission. The bill specifically excludes for-profit lessees from receiving this tax exemption, meaning that if a for-profit entity leases part of the property, that portion would still be subject to property taxes. The tax exemption, once granted, will not need to be re-claimed in subsequent years unless the property's ownership changes or the organization's qualifications for the exemption change. The bill will take effect on January 1, 2026, and will apply to ad valorem (property) tax years beginning on or after that date.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2973