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


Office of House Bill AnalysisH.J.R. 4
By: Kuempel
Ways and Means
3/22/1999
Introduced



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 in the general law
instead of the constitution 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 of public
charity as defined by general law 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 of public charity as defined by general
law, 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.