H.B. No. 2525 proposes amendments to the Texas Tax Code regarding the exemption from ad valorem taxation for certain properties owned by charitable organizations that provide housing and related services to individuals aged 62 and older. The bill introduces new provisions that define "charitable housing and services" and specifies that to qualify for tax exemption, organizations must have been in existence for at least 20 years or be under common control with a qualifying organization. Additionally, the bill outlines that these organizations must provide housing and services without regard to the residents' ability to pay or ensure that at least four percent of their net resident revenue is allocated to charitable care.

The bill also amends existing definitions and requirements related to charitable functions, including the types of services that can be offered to elderly individuals. Notably, it clarifies that "charity care" and related terms will be determined similarly for retirement communities and nursing homes as they are for hospitals. The changes will take effect on January 1, 2026, and will apply only to ad valorem tax years beginning on or after that date.

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)