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 specifically adds new provisions to Section 11.18, allowing organizations to qualify for this exemption if they provide permanent housing and related services without regard to the residents' ability to pay or if they contribute at least four percent of their net resident revenue towards charitable housing and services. Additionally, the bill introduces a new definition for "charitable housing and services," which includes various forms of housing and support tailored to the unique needs of elderly individuals.

The legislation also establishes criteria for organizations seeking this exemption, requiring them to have been in existence for at least 20 years or to be under common control with a qualifying organization. The changes will take effect on January 1, 2026, and will apply only to ad valorem tax years beginning on or after that date. Overall, H.B. No. 2525 aims to enhance support for charitable organizations that serve the elderly population by easing their tax burdens.

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)