HBA-RBT H.B. 2269 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2269
By: Hamric
Ways & Means
4/28/1999
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Currently, property owned by certain charitable organizations performing
certain functions is exempt from ad valorem taxation.  H.B. 2269 includes
in that list an organization that provides housing on a cooperative basis
to students of an institution of higher education if the organization is
exempt from federal income taxes under Section 501(a) of the Internal
Revenue Code of 1986, and its subsequent amendments, by being listed as an
exempt entity.  

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 11.18(d), Tax Code, to include in the list of
charitable organizations, an organization that provides housing on a
cooperative basis to students of an institution of higher education if the
organization is exempt from federal income taxes under Section 501(a) of
the Internal Revenue Code of 1986, and its subsequent amendments, by being
listed as an exempt entity. Makes a nonsubstantive change. 

SECTION 2.  Effective date: January 1, 2000.

SECTION 3.  Emergency clause.

EXPLANATION OF AMENDMENTS

Committee Amendment No.  1.

Deletes language which includes in the list of charitable organizations, an
organization that provides housing on a cooperative basis to students of an
institution of higher education if the organization is exempt from federal
income taxes under Section 501(a) of the Internal Revenue Code of 1986, and
its subsequent amendments, by being listed as an exempt entity.  

Includes in the list of charitable organizations, an organization that
provides housing on a cooperative basis to students of an institution of
higher education if the organization is exempt from federal income taxes
under Section 501(a) of the Internal Revenue Code of 1986, and its
subsequent amendments, by being listed as an exempt entity, the 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, the
organization is governed by its members, and the members of the
organization share the responsibility for managing the housing.