HBA-JRA H.J.R. 4 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 4
By: Kuempel
Ways and Means
7/28/1999
Enrolled



BACKGROUND AND PURPOSE 

Section 2(a), Article VIII, Texas Constitution, currently provides an
exemption from ad valorem taxation for property of institutions of purely
public charity.  The constitution provides that an organization designed to
support the elderly is a charitable organization.  Many senior citizen
centers provide a variety of services to senior citizens.  Some counties
have interpreted the constitution to mean that the charitable organization
must be designed exclusively to provide support to the elderly to qualify
for an exemption.  Defining a charitable organization as an institutions
engaged primarily in public charitable functions would ensure uniform
taxation of such entities throughout the state. H.B. 1978, also proposed
this session, amends Section 11.18, Tax Code, to include senior citizens
centers that provide many kinds of services to the elderly in the
definition of a charitable organization. 

As proposed, H.J.R. 4 requires the submission to the voters of a
constitutional amendment exempting the property of institutions engaged
primarily in public charitable functions, which may conduct auxiliary
activities to support those charitable functions, from ad valorem taxation. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2(a), Article VIII, Texas Constitution, to
exempt the property of institutions engaged primarily in public charitable
functions, which may conduct auxiliary activities to support those
charitable functions, rather than institutions of purely public charity,
from ad valorem taxation. 

SECTION 2.  Amends Section 71(b), Article XVI, Texas Constitution, to make
a conforming change. 

SECTION 3.  Amends Article VIII, Texas Constitution, to add a temporary
provision, which expires January 1, 2002, that the constitutional amendment
proposed takes effect January 1, 2000, and is applicable only to taxes
imposed on or after that date. 

SECTION 4.  Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999.  Sets forth the
required language for the ballot.