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A BILL TO BE ENTITLED
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AN ACT
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relating to the contents of an affidavit required to be included |
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with an application for an exemption from ad valorem taxation of all |
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or part of the appraised value of real property used to operate a |
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child-care facility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.36(a), Tax Code, as added by Chapter |
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281 (S.B. 1145), Acts of the 88th Legislature, Regular Session, |
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2023, is amended by amending Subdivision (2) and adding Subdivision |
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(3) to read as follows: |
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(2) "Net lease" means a lease under which the lessee |
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pays, in addition to a base rental amount, the taxes imposed on the |
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property that is the subject of the lease. The term includes a |
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double net lease and a triple net lease. |
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(3) "Qualifying child-care facility" means a |
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child-care facility: |
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(A) the owner or operator of which participates |
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in the Texas Workforce Commission's Texas Rising Star Program as |
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described by Section 2308.3155, Government Code, for that facility; |
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and |
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(B) at which at least 20 percent of the total |
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number of children enrolled at the facility receive subsidized |
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child-care services provided through the child-care services |
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program administered by the Texas Workforce Commission. |
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SECTION 2. Section 11.36(f), Tax Code, as added by Chapter |
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281 (S.B. 1145), Acts of the 88th Legislature, Regular Session, |
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2023, is amended to read as follows: |
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(f) A person who claims an exemption under Subsection (b)(2) |
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must include with the application for the exemption an affidavit |
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certifying to the chief appraiser for the appraisal district that |
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appraises the property that is the subject of the application that: |
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(1) either: |
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(A) the person has provided to the child-care |
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facility to which the property is leased a disclosure document |
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stating the amount by which the taxes on the property are reduced as |
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a result of the exemption and the method the person will implement |
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to ensure that the rent charged for the lease of the property fully |
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reflects that reduction; or |
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(B) the property is subject to a net lease and the |
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child-care facility to which the property is leased is responsible |
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for paying the taxes imposed on the property; |
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(2) the rent charged for the lease of the property |
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reflects the reduction in the amount of taxes on the property |
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resulting from the exemption, either through a monthly or annual |
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credit against the rent or, if applicable, by operation of the net |
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lease to which the property is subject; and |
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(3) the person does not charge rent for the lease of |
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the property in an amount that exceeds: |
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(A) for property that consists of space in a |
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commercial property, the rent charged by the person to other |
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tenants of the commercial property for similar space; or |
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(B) for property other than property described by |
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Paragraph (A), the average rent charged for comparable rental |
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property. |
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SECTION 3. The change in law made by this Act applies only |
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to an application for an exemption from ad valorem taxation under |
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Section 11.36, Tax Code, as added by Chapter 281 (S.B. 1145), Acts |
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of the 88th Legislature, Regular Session, 2023, that is filed on or |
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after the effective date of this Act. An application for an |
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exemption from ad valorem taxation under that section that was |
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filed before the effective date of this Act is covered by the law in |
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effect on the date the application was filed, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. To the extent of any conflict, this Act prevails |
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over another Act of the 89th Legislature, Regular Session, 2025, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |