H.B. No. 4580 proposes an amendment to the Texas Tax Code, specifically adding a new subsection to Section 11.23. This new subsection (n) establishes an exemption from ad valorem taxation for all real and personal property owned by nonprofit corporations that are organized exclusively for charitable, educational, and scientific purposes. The exemption applies specifically to properties used for promoting agriculture, supporting youth, and providing educational support in counties with a population of 3.3 million or more. However, the bill clarifies that this exemption does not extend to any interests in real or personal property held by for-profit lessees of the nonprofit corporations.

The bill is set to take effect on January 1, 2026, and applies only to ad valorem tax years beginning on or after that date. This legislative change aims to support nonprofit organizations that contribute to community development and education in populous areas of Texas.

Statutes affected:
Introduced: Tax Code 11.43 (Tax Code 11)
House Committee Report: Tax Code 11.23, Tax Code 11.43 (Tax Code 11)
Engrossed: Tax Code 11.23, Tax Code 11.43 (Tax Code 11)
Senate Committee Report: Tax Code 11.23 (Tax Code 11)