H.B. No. 456

	AN ACT
	relating to an exemption from ad valorem taxation of certain
	interests in a mineral in place owned by certain charitable
	organizations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 11.18(a), Tax Code, is amended to read as
	follows:
	(a)  An organization that qualifies as a charitable
	organization as provided by this section is entitled to an
	exemption from taxation of:
	(1)  the buildings and tangible personal property that:
	(A)  are owned by the charitable organization; and
	(B)  except as permitted by Subsection (b), are
	used exclusively by qualified charitable organizations; [and]
	(2)  the real property owned by the charitable
	organization consisting of:
	(A)  an incomplete improvement that:
	(i)  is under active construction or other
	physical preparation; and
	(ii)  is designed and intended to be used
	exclusively by qualified charitable organizations; and
	(B)  the land on which the incomplete improvement
	is located that will be reasonably necessary for the use of the
	improvement by qualified charitable organizations; and
	(3)  if the charitable organization is described by
	Subsection (d)(1), (2), (3)(A)(ii), (5), (8), (13), (15), or (19),
	the real property owned by the charitable organization consisting
	of an interest in a mineral in place, including a royalty interest,
	provided that the interest:
	(A)  is not severed from the surface estate; or
	(B)  was donated to the charitable organization by
	the previous owner of the interest.
	SECTION 2.  This Act applies only to ad valorem taxes imposed
	for a tax year beginning on or after the effective date of this Act.
	SECTION 3.  This Act takes effect January 1, 2024.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 456 was passed by the House on April
	5, 2023, by the following vote:  Yeas 145, Nays 1, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 456 on May 25, 2023, by the following vote:  Yeas 135, Nays 2, 1
	present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 456 was passed by the Senate, with
	amendments, on May 21, 2023, by the following vote:  Yeas 29, Nays
	2.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor

Statutes affected:
Introduced: Tax Code 11.18 (Tax Code 11)
House Committee Report: Tax Code 11.18 (Tax Code 11)
Engrossed: Tax Code 11.18 (Tax Code 11)
Senate Committee Report: Tax Code 11.18 (Tax Code 11)
Enrolled: Tax Code 11.18 (Tax Code 11)