S.B. No. 1237 proposes amendments to the Texas Tax Code regarding the exemption from ad valorem taxation for properties owned by charitable organizations that provide housing and related services to individuals aged 62 and older. The bill introduces new provisions that specify the criteria for these organizations to qualify for tax exemptions, including the requirement that they must have been in existence for at least 20 years or be under common control with a qualifying organization. Additionally, the bill defines "charitable housing and services" to include various forms of housing and support services tailored to the unique needs of elderly individuals.

The bill also modifies existing language in Section 11.18 of the Tax Code, particularly in Subsection (d), by adding new criteria for charitable organizations that provide housing and related services. Notably, it specifies that these organizations must provide services without regard to the residents' ability to pay or ensure that a minimum of four percent of their net resident revenue is allocated to charitable care. The changes are set to take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date.

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