The bill, introduced by Kerwin as H.B. No. 131, amends the Texas Tax Code to modify the exemption from ad valorem taxation for properties owned by organizations primarily engaged in charitable functions. Key changes include the stipulation that the exemption will expire if the organization no longer owns the property or if the comptroller determines that the organization no longer qualifies for the exemption based on specific factors. Additionally, the bill introduces new requirements for organizations to notify the comptroller and the chief appraiser of any material changes, such as the sale of the property or changes in their tax-exempt status.

Furthermore, the bill allows for automatic reinstatement of expired exemptions for organizations that meet certain criteria, including continued ownership of the property and possession of a valid determination letter from the comptroller. It also specifies that organizations entitled to continued exemptions will not owe taxes for the period following the expiration of their exemption until they are confirmed eligible for reinstatement. The amendments aim to streamline the process for charitable organizations while ensuring compliance with tax regulations. The changes will take effect on January 1, 2026.

Statutes affected:
Introduced: Tax Code 11.184, Tax Code 11.43 (Tax Code 11)