Bill Text: TX SB670 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to the exemption from ad valorem taxation of real property leased to and used by certain schools.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-11 - Referred to Finance [SB670 Detail]

Download: Texas-2021-SB670-Introduced.html
  87R3972 CJC-F
 
  By: Springer S.B. No. 670
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation of real property
  leased to and used by certain schools.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.211 to read as follows:
         Sec. 11.211.  REAL PROPERTY LEASED TO CERTAIN SCHOOLS. (a)  
  A person is entitled to an exemption from taxation of the portion of
  the real property that the person owns and leases to an
  open-enrollment charter school authorized by Subchapter D, Chapter
  12, Education Code, that is qualified as provided by Section
  11.21(d) of this code if:
               (1)  the portion of the real property that is leased to
  the school is:
                     (A)  used exclusively by the school for the
  operation or administration of the school or the performance of
  other educational functions by the school; and
                     (B)  reasonably necessary for a purpose described
  by Paragraph (A); and
               (2)  the owner of the portion of the real property that
  is leased to the school certifies by affidavit to the school that:
                     (A)  if the lease agreement requires the school to
  pay the taxes imposed on the real property as a portion of the total
  consideration paid to the property owner under the agreement, the
  owner will reduce the total consideration required to be paid by the
  school under the lease agreement by an amount equal to the amount by
  which the taxes on the real property are reduced as a result of the
  exemption by providing a monthly or annual credit against the total
  consideration due under the agreement; or
                     (B)  if the lease agreement requires the school to
  pay the taxes imposed on the real property directly to the collector
  for the applicable taxing unit or to the owner or the property
  manager separately from the payment of rent to the property owner
  under the agreement, the school is no longer required to pay the
  taxes to the collector, owner, or property manager, as applicable,
  and the rent charged to the school under the agreement is not
  affected unless a term of the agreement specifically provides for a
  change in the amount of the rent.
         (b)  A property owner required to provide an affidavit
  described by Subsection (a)(2)(A) to an open-enrollment charter
  school shall:
               (1)  provide the school with a disclosure document
  stating the amount by which the taxes on the real property are
  reduced as a result of the exemption and the method the owner will
  implement to ensure that the total consideration for the lease of
  the real property fully reflects the total amount of that
  reduction; and
               (2)  reduce the total consideration for the lease of
  the real property through a monthly or annual credit against the
  total consideration to reflect the amount by which the taxes on the
  real property are reduced as a result of the exemption.
         (c)  This section may not be construed as invalidating an
  exemption from taxation of real property granted to an
  open-enrollment charter school on the basis of Section 12.128,
  Education Code, before January 1, 2022. 
         (d)  Section 25.07 does not apply to a leasehold interest in
  real property for which the owner receives an exemption under this
  section.
         SECTION 2.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, authorizing the legislature to exempt from
  ad valorem taxation real property leased to certain schools
  organized and operated primarily for the purpose of engaging in
  educational functions is approved by the voters. If that amendment
  is not approved by the voters, this Act has no effect.
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