Bill Text: TX HB4752 | 2025-2026 | 89th Legislature | Engrossed

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Bill Title: Relating to the eligibility of certain charitable organizations to receive an exemption from ad valorem taxation.

Sponsorship: Partisan Bill (Republican 1)

Status: (Engrossed - Dead) 2025-05-13 - Referred to Local Government [HB4752 Detail]

Download: Texas-2025-HB4752-Engrossed.html

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89R25310 JBD-F
By: Landgraf H.B. No. 4752

A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of certain charitable organizations to
receive an exemption from ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.18, Tax Code, is amended by amending
Subsection (g) and adding Subsection (g-1) to read as follows:
(g) A charitable organization that performs a charitable
function specified by Subsection (d)(15) must:
(1) [be affiliated with a state or national
organization that authorizes, approves, or sanctions volunteer
charitable fundraising organizations;
[(2)] qualify for exemption under Section 501(c)(3),
Internal Revenue Code of 1986, as amended;
(2) [(3)] be governed by a volunteer board of
directors; and
(3) [(4)] distribute contributions to at least five
other associations to be used for general charitable purposes, with
all recipients meeting the following criteria:
(A) be governed by a volunteer board of
directors;
(B) qualify for exemption under Section
501(c)(3), Internal Revenue Code of 1986, as amended;
(C) receive a majority of annual revenue from
private or corporate charitable gifts and government agencies; and
(D) provide services without regard to the
ability of persons receiving the services to pay for the services.
(g-1) A charitable organization that otherwise meets the
requirements of Subsections (d)(15) and (g) is not ineligible for
an exemption under Subsection (d)(15) because the organization also
distributes contributions to public institutions of higher
education.
SECTION 2. The change in law made by 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.