H.B. No. 23 amends the Texas Tax Code to provide an exemption from ad valorem taxation for certain properties owned by nonprofit corporations in populous counties, specifically those with a population of 3.3 million or more. The bill introduces a new subsection (n) that defines the criteria for this exemption, stating that all real and personal property owned by nonprofit corporations organized exclusively for charitable, educational, and scientific purposes, and used to promote agriculture, support youth, and provide educational support in the community, will be exempt from ad valorem taxation. However, the 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 January 1, 2026, which is the effective date of the bill. The legislation aims to support nonprofit organizations that contribute to community development and education in populous areas by alleviating their tax burdens.

Statutes affected:
Introduced: Tax Code 11.23 (Tax Code 11)
House Committee Report: Tax Code 11.23 (Tax Code 11)
Engrossed: Tax Code 11.23 (Tax Code 11)
Enrolled: Tax Code 11.23 (Tax Code 11)