Bill Text: TX HB3621 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Relating to a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2023-05-05 - Committee report sent to Calendars [HB3621 Detail]
Download: Texas-2023-HB3621-Comm_Sub.html
| 88R22157 CJC-D | |||
| By: Talarico, Button, Bernal, | H.B. No. 3621 | ||
| Johnson of Dallas, Goodwin | |||
| Substitute the following for H.B. No. 3621: | |||
| By: Turner | C.S.H.B. No. 3621 | ||
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| relating to a local option exemption from ad valorem taxation by a | ||
| county or municipality of all or part of the appraised value of real | ||
| property used to operate a child-care facility. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by | ||
| adding Section 11.36 to read as follows: | ||
| Sec. 11.36. CHILD-CARE FACILITIES. (a) In this section: | ||
| (1) "Child-care facility" means a facility licensed by | ||
| the Health and Human Services Commission to provide assessment, | ||
| care, training, education, custody, treatment, or supervision for a | ||
| child who is not related by blood, marriage, or adoption to the | ||
| owner or operator of the facility, for all or part of the 24-hour | ||
| day, whether or not the facility is operated for profit or charges | ||
| for the services it offers. | ||
| (2) "Qualifying child-care facility" means a | ||
| child-care facility: | ||
| (A) the owner or operator of which participates | ||
| in the Texas Workforce Commission's Texas Rising Star Program as | ||
| described by Section 2308.3155, Government Code, for that facility; | ||
| and | ||
| (B) at which at least 20 percent of the total | ||
| number of children enrolled at the facility receive subsidized | ||
| child-care services provided through the child-care services | ||
| program administered by the Texas Workforce Commission. | ||
| (b) Subject to Subsection (d), if the governing body of a | ||
| county or municipality in the manner required by law for official | ||
| action by the governing body adopts the exemption, a person is | ||
| entitled to an exemption from taxation by the county or | ||
| municipality of all or part of the appraised value of: | ||
| (1) the real property the person owns and operates as a | ||
| qualifying child-care facility; or | ||
| (2) the portion of the real property that the person | ||
| owns and leases to a person who uses the property to operate a | ||
| qualifying child-care facility. | ||
| (c) The governing body of a county or municipality may adopt | ||
| the exemption authorized by this section as a percentage of the | ||
| appraised value of the property. The percentage specified by the | ||
| governing body may not be less than 50 percent. | ||
| (d) To qualify for the exemption authorized by this section, | ||
| the property must be: | ||
| (1) except as provided by Subsection (e), used | ||
| exclusively to provide developmental and educational services for | ||
| children attending the child-care facility; and | ||
| (2) reasonably necessary for the operation of the | ||
| child-care facility. | ||
| (e) The use of exempt property for functions other than | ||
| providing developmental and educational services for children | ||
| attending the child-care facility located on the property does not | ||
| result in the loss of an exemption authorized by this section if | ||
| those other functions are incidental to the use of the property for | ||
| providing those services to those children and benefit: | ||
| (1) those children; or | ||
| (2) the staff and faculty of the facility. | ||
| (f) A person who claims an exemption under Subsection (b)(2) | ||
| must include with the application for the exemption an affidavit | ||
| certifying to the chief appraiser for the appraisal district that | ||
| appraises the property that is the subject of the application that: | ||
| (1) the person has provided to the child-care facility | ||
| to which the property is leased a disclosure document stating the | ||
| amount by which the taxes on the property are reduced as a result of | ||
| the exemption and the method the person will implement to ensure | ||
| that the rent charged for the lease of the property fully reflects | ||
| that reduction; | ||
| (2) the rent charged for the lease of the property | ||
| reflects the reduction in the amount of taxes on the property | ||
| resulting from the exemption through a monthly or annual credit | ||
| against the rent; and | ||
| (3) the person does not charge rent for the lease of | ||
| the property in an amount that exceeds: | ||
| (A) for property that consists of space in a | ||
| commercial property, the rent charged by the person to other | ||
| tenants of the commercial property for similar space; or | ||
| (B) for property other than property described by | ||
| Paragraph (A), the average rent charged for comparable rental | ||
| property. | ||
| (g) Notwithstanding any other provision of this section, a | ||
| person may not claim an exemption under Subsection (b)(2) for | ||
| property: | ||
| (1) for which the person claims an exemption under | ||
| Section 11.13; or | ||
| (2) any part of which is leased by the person to | ||
| another person for use as a principal residence. | ||
| (h) Property is not ineligible for an exemption under this | ||
| section if a portion of the property is used for functions other | ||
| than those described by Subsections (d) and (e). However, the | ||
| exemption does not apply to the value of the portion of the property | ||
| that is used for those other functions. | ||
| (i) Section 25.07 does not apply to a leasehold interest in | ||
| property for which the owner receives an exemption under this | ||
| section. | ||
| (j) The comptroller may adopt rules and forms necessary for | ||
| the administration of this section. | ||
| SECTION 2. Section 11.43(c), Tax Code, is amended to read as | ||
| follows: | ||
| (c) An exemption provided by Section 11.13, 11.131, 11.132, | ||
| 11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, | ||
| 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, | ||
| 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [ |
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| 11.36, once allowed, need not be claimed in subsequent years, and | ||
| except as otherwise provided by Subsection (e), the exemption | ||
| applies to the property until it changes ownership or the person's | ||
| qualification for the exemption changes. However, except as | ||
| provided by Subsection (r), the chief appraiser may require a | ||
| person allowed one of the exemptions in a prior year to file a new | ||
| application to confirm the person's current qualification for the | ||
| exemption by delivering a written notice that a new application is | ||
| required, accompanied by an appropriate application form, to the | ||
| person previously allowed the exemption. If the person previously | ||
| allowed the exemption is 65 years of age or older, the chief | ||
| appraiser may not cancel the exemption due to the person's failure | ||
| to file the new application unless the chief appraiser complies | ||
| with the requirements of Subsection (q), if applicable. | ||
| SECTION 3. This Act applies only to ad valorem taxes imposed | ||
| for a tax year beginning on or after the effective date of this Act. | ||
| SECTION 4. This Act takes effect January 1, 2024, but only | ||
| if the constitutional amendment proposed by the 88th Legislature, | ||
| Regular Session, 2023, authorizing a local option exemption from ad | ||
| valorem taxation by a county or municipality of all or part of the | ||
| appraised value of real property used to operate a child-care | ||
| facility is approved by the voters. If that amendment is not | ||
| approved by the voters, this Act has no effect. | ||
