89R13864 CS-F
	By: Vasut, Leo Wilson	H.B. No. 4240

	A BILL TO BE ENTITLED
	AN ACT
	relating to the exemption from ad valorem taxation of property of a
	charitable organization that provides financial support for
	medical care at certain institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 11.18(a) and (d), Tax Code, are amended
	to read as follows:
	(a)  An organization that qualifies as a charitable
	organization as provided by this section is entitled to an
	exemption from taxation of:
	(1)  the buildings and tangible personal property that:
	(A)  are owned by the charitable organization; and
	(B)  except as permitted by Subsection (b), are
	used exclusively by qualified charitable organizations;
	(2)  the real property owned by the charitable
	organization consisting of:
	(A)  an incomplete improvement that:
	(i)  is under active construction or other
	physical preparation; and
	(ii)  is designed and intended to be used
	exclusively by qualified charitable organizations; and
	(B)  the land on which the incomplete improvement
	is located that will be reasonably necessary for the use of the
	improvement by qualified charitable organizations; and
	(3)  if the charitable organization is described by
	Subsection (d)(1), (2), (3)(A)(ii), (5), (8), (13), (15), [or]
	(19), or (27), the real property owned by the charitable
	organization consisting of an interest in a mineral in place,
	including a royalty interest, provided that the interest:
	(A)  is not severed from the surface estate; or
	(B)  was donated to the charitable organization by
	the previous owner of the interest.
	(d)  A charitable organization must be organized exclusively
	to perform religious, charitable, scientific, literary, or
	educational purposes and, except as permitted by Subsections (h)
	and (l), engage exclusively in performing one or more of the
	following charitable functions:
	(1)  providing medical care without regard to the
	beneficiaries' ability to pay, which in the case of a nonprofit
	hospital or hospital system means providing charity care and
	community benefits in accordance with Section 11.1801;
	(2)  providing support or relief to orphans, delinquent
	or dependent children in need of residential care, children with
	disabilities in need of residential care, abused or battered
	spouses or children in need of temporary shelter, the impoverished,
	or victims of natural disaster without regard to the beneficiaries'
	ability to pay;
	(3)  providing support without regard to the
	beneficiaries' ability to pay to:
	(A)  elderly persons, including the provision of:
	(i)  recreational or social activities; and
	(ii)  facilities designed to address the
	special needs of elderly persons; or
	(B)  persons with disabilities, including
	training and employment:
	(i)  in the production of commodities; or
	(ii)  in the provision of services under 41
	U.S.C. Sections 8501-8506;
	(4)  preserving a historical landmark or site;
	(5)  promoting or operating a museum, zoo, library,
	theater of the dramatic or performing arts, or symphony orchestra
	or choir;
	(6)  promoting or providing humane treatment of
	animals;
	(7)  acquiring, storing, transporting, selling, or
	distributing water for public use;
	(8)  answering fire alarms and extinguishing fires with
	no compensation or only nominal compensation to the members of the
	organization;
	(9)  promoting the athletic development of boys or
	girls under the age of 18 years;
	(10)  preserving or conserving wildlife;
	(11)  promoting educational development through loans
	or scholarships to students;
	(12)  providing halfway house services pursuant to a
	certification as a halfway house by the parole division of the Texas
	Department of Criminal Justice;
	(13)  providing permanent housing and related social,
	health care, and educational facilities for persons who are 62
	years of age or older without regard to the residents' ability to
	pay;
	(14)  promoting or operating an art gallery, museum, or
	collection, in a permanent location or on tour, that is open to the
	public;
	(15)  providing for the organized solicitation and
	collection for distributions through gifts, grants, and agreements
	to nonprofit charitable, education, religious, and youth
	organizations that provide direct human, health, and welfare
	services;
	(16)  performing biomedical or scientific research or
	biomedical or scientific education for the benefit of the public;
	(17)  operating a television station that produces or
	broadcasts educational, cultural, or other public interest
	programming and that receives grants from the Corporation for
	Public Broadcasting under 47 U.S.C. Section 396, as amended;
	(18)  providing housing for low-income and
	moderate-income families, for unmarried individuals 62 years of age
	or older, for individuals with disabilities, and for families
	displaced by urban renewal, through the use of trust assets that are
	irrevocably and, pursuant to a contract entered into before
	December 31, 1972, contractually dedicated on the sale or
	disposition of the housing to a charitable organization that
	performs charitable functions described by Subdivision (9);
	(19)  providing housing and related services to persons
	who are 62 years of age or older in a retirement community, if the
	retirement community provides independent living services,
	assisted living services, and nursing services to its residents on
	a single campus:
	(A)  without regard to the residents' ability to
	pay; or
	(B)  in which at least four percent of the
	retirement community's combined net resident revenue is provided in
	charitable care to its residents;
	(20)  providing housing on a cooperative basis to
	students of an institution of higher education if:
	(A)  the organization is exempt from federal
	income taxation under Section 501(a), Internal Revenue Code of
	1986, as amended, by being listed as an exempt entity under Section
	501(c)(3) of that code;
	(B)  membership in the organization is open to all
	students enrolled in the institution and is not limited to those
	chosen by current members of the organization;
	(C)  the organization is governed by its members;
	and
	(D)  the members of the organization share the
	responsibility for managing the housing;
	(21)  acquiring, holding, and transferring unimproved
	real property under an urban land bank demonstration program
	established under Chapter 379C, Local Government Code, as or on
	behalf of a land bank;
	(22)  acquiring, holding, and transferring unimproved
	real property under an urban land bank program established under
	Chapter 379E, Local Government Code, as or on behalf of a land bank;
	(23)  providing housing and related services to
	individuals who:
	(A)  are unaccompanied and homeless and have a
	disabling condition; and
	(B)  have been continuously homeless for a year or
	more or have had at least four episodes of homelessness in the
	preceding three years;
	(24)  operating a radio station that broadcasts
	educational, cultural, or other public interest programming,
	including classical music, and that in the preceding five years has
	received or been selected to receive one or more grants from the
	Corporation for Public Broadcasting under 47 U.S.C. Section 396, as
	amended;
	(25)  providing, without regard to the beneficiaries'
	ability to pay, tax return preparation services and assistance with
	other financial matters; [or]
	(26)  providing services related to planning for the
	placement of or placing children in foster or adoptive homes or
	providing support or relief to women who are or may be pregnant and
	who are considering placing their unborn children for adoption; or
	(27)  providing financial support for medical care at
	an institution of higher education described by Section 63.101,
	Education Code.
	SECTION 2.  The changes in law made by this Act apply only to
	an ad valorem tax year that begins on or after the effective date of
	this Act.
	SECTION 3.  This Act takes effect January 1, 2026.