Bill Text: TX HB3438 | 2025-2026 | 89th Legislature | Introduced

Texas House Bill 3438

Introduced

Bill Title: Relating to the property tax exemption for certain nonprofit community business organizations.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2025-03-21 - Referred to Ways & Means [HB3438 Detail]

Download: Texas-2025-HB3438-Introduced.html



	By: Guillen	H.B. No. 3438



	A BILL TO BE ENTITLED
	AN ACT
	relating to the property tax exemption for certain nonprofit
	community business organizations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subsection (a), Section 11.231, Tax Code, is
	amended to read as follows:
	(a) In this section, "nonprofit community business
	organization" means an organization that meets the following
	requirements:
	(1) the organization has been in existence for at
	least the preceding five years;
	(2) the organization:
	(A) is a nonprofit corporation organized under
	the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
	Vernon's Texas Civil Statutes) or a nonprofit corporation formed
	under the Texas Nonprofit Corporation Law, as described by Section
	1.008, Business Organizations Code;
	(B) is a nonprofit organization described by
	Section 501(c)(6), Internal Revenue Code of 1986; and
	(C) is not a statewide organization;
	(3) for at least the preceding three years, the
	organization has maintained a dues-paying membership of at least 50
	members; and
	(4) the organization:
	(A) has a board of directors elected by the
	members;
	(B) does not compensate members of the board of
	directors for service on the board;
	(C) with respect to its activities in this state,
	is engaged primarily in performing functions listed in Subsection
	(d);
	(D) is primarily supported by membership dues and
	other income from activities substantially related to its primary
	functions; and
	(E) is not,and has not formed[~~, and does not~~
	~~financially support~~] a political committee as defined by Section
	251.001, Election Code.
	SECTION 2. This Act applies only to an ad valorem tax year
	that begins on or after the effective date of this Act.
	SECTION 3. This Act takes effect January 1, 2026.