HBA-SEB C.S.H.B. 3368 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3368
By: Talton
Ways & Means
5/3/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, a religious organization seeking to qualify for a tax exemption
must file an application and meet specific criteria in order to qualify.
C.S.H.B. 3368 provides that a religious organization is not required to
apply for a tax exemption.  This bill applies to a religious organization
that has conscientious objections to filing an application for exemption
and that has been declared exempt from taxation.  Instead of applying for
the exemption, this bill authorizes the religious organization to identify
the property owned by the organization, state its objections to filing for
the exemption, and submit evidence showing that it is exempt from taxation.
Upon receipt of the  information, the chief appraiser is required to grant
the exemption unless the chief appraiser determines that the religious
organization is not entitled to the exemption. 

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 11.43, Tax Code, by adding Subsection (l), to
provide that this subsection applies only to a religious organization that
has conscientious objections to filing an application for exemption.
Authorizes the religious organization, in lieu of applying for the
exemption, to identify the property owned by the organization, state its
objections to filing for the exemption, and submit evidence showing that it
is exempt from taxation on its own initiative or on written or oral inquiry
by the appraisal office.  Requires the chief appraiser to investigate
whether the organization qualifies for exemption on receipt of that
information.  Requires the chief appraiser to grant the exemption unless
the chief appraiser determines that the religious organization is not
entitled to the exemption 

SECTION 2.Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original in SECTION 1 by removing language
relating to the Internal Revenue Code of 1986.  More specifically, the
substitute removes the provision stating that new Subsection (l) applies
only to a religious organization that has been declared exempt from
taxation under the code.  Also, the substitute authorizes, rather than
requires, a religious organization to take certain actions in lieu of
filing an application for an exemption.  The substitute removes text from
the original providing that a religious organization is not required to
apply for the exemption set out in Section 11.20, Tax Code.