The bill, S.B. No. 2973, proposes an amendment to the Texas Tax Code to exempt certain properties owned by nonprofit corporations from ad valorem taxation. Specifically, it introduces a new subsection (n) under Section 11.23, which states that in counties with a population of 3.3 million or more, all real and personal property owned by nonprofit organizations dedicated to charitable, educational, and scientific purposes will be exempt from ad valorem taxes if the property is used to promote agriculture, support youth, and provide educational support in the community. Additionally, the bill clarifies that incidental use of the property for purposes other than those specified will not result in the loss of the exemption, provided that the revenue generated benefits the nonprofit's beneficiaries.

Furthermore, the bill amends Section 11.43(c) to include the new subsection (n) among the exemptions that do not need to be claimed in subsequent years, ensuring that once granted, the exemption remains in effect until there is a change in ownership or qualification. The bill is set to take effect on January 1, 2026, and applies to ad valorem tax years beginning on or after that date.

Statutes affected:
Introduced: Tax Code 11.23, Tax Code 11.43 (Tax Code 11)