The bill, S.B. No. 1237, proposes amendments to the Texas Tax Code to expand 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. Specifically, it adds provisions that define "charitable housing and services" and stipulates that these services must be provided to individuals in financial need. The bill allows for the provision of housing, including independent living, assisted living, and nursing facilities, as well as various supportive services tailored to the unique needs of elderly individuals.

Key changes include the insertion of new definitions and requirements for charitable organizations, such as the stipulation that at least four percent of the organization's net resident revenue must be allocated to charitable housing and services. Additionally, the bill removes previous language that required a minimum percentage of charitable care to be provided by retirement communities. The amendments 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)