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

Texas Senate Bill 670 (Prior Session Legislation)

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.