The bill 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 corporations organized exclusively for 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 this exemption does not apply to any interests in real or personal property held by for-profit lessees of the nonprofit corporation. The provisions of this act will only apply to ad valorem tax years beginning on or after its effective date, which is set for January 1, 2026.

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