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) to Section 11.23, which states 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 interest 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 also the effective date of the act. The bill was passed by both the House and Senate in August 2025, indicating legislative support for the initiative aimed at supporting nonprofit organizations that contribute to community development in populous areas.

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)