The bill, H.B. No. 122, proposes an amendment to the Texas Tax Code to provide an exemption from ad valorem taxation for property owned by certain nonprofit corporations in populous counties, specifically those with a population of 3.3 million or more. The new legal language specifies that all real and personal property owned by nonprofit corporations organized exclusively for charitable, educational, and scientific purposes, and used for promoting agriculture, supporting youth, and providing educational support in the community, will be exempt from ad valorem taxation. 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 will 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 educational initiatives in large counties, thereby fostering agricultural promotion and youth support.

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