H.B. No. 1035 amends the Tax Code to clarify the requirements for an affidavit that must accompany applications for exemptions from ad valorem taxation for properties used as child-care facilities. The bill introduces new definitions, including "net lease," which refers to leases where the lessee pays property taxes in addition to base rent, and "qualifying child-care facility," which specifies criteria for facilities participating in the Texas Rising Star Program and serving a minimum percentage of subsidized children.

Additionally, the bill outlines the necessary content of the affidavit, requiring applicants to certify that they have either provided a disclosure document to the child-care facility regarding tax reductions or that the property is under a net lease where the facility pays the taxes. It also mandates that the rent charged reflects the tax reduction and does not exceed comparable rental rates. The changes apply only to applications filed after the bill's effective date, which is contingent on legislative approval for immediate effect or set for September 1, 2025.

Statutes affected:
Introduced: Tax Code 11.36 (Tax Code 11)