H.B. No. 2525 amends the Texas Tax Code to provide an exemption from ad valorem taxation for certain properties owned by charitable organizations that offer housing and related services to individuals aged 62 and older. The bill modifies Section 11.18 by adding new provisions that specify the criteria for these organizations to qualify for the exemption. Notably, it introduces a requirement that to be eligible for the exemption, a charitable organization must have been in existence for at least 20 years or be under common control with another qualifying organization. Additionally, the bill defines "charitable housing and services" to include various forms of housing and support services tailored to the needs of elderly individuals.

The legislation also clarifies the definitions of "charity care," "government-sponsored indigent health care," and "net resident revenue" to align with existing standards for hospitals. The changes will only apply to ad valorem tax years beginning on or after January 1, 2026, which is the effective date of the Act. Overall, H.B. No. 2525 aims to enhance support for charitable organizations that serve the elderly population by providing them with tax relief, thereby encouraging the provision of essential housing and services.

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)