84(R) - 2015
Relating to the procedure for claiming an exemption from ad valorem taxation of the property of a veteran's organization.
A fiscal note dated April 6, 2015 anticipates no fiscal implication to the State or to units of local government.
Senate Bill 918 would amend Chapter 11 of the Tax Code, related taxable property and exemptions.
Under Section 11.43 (c), several exemptions allowed once do not need to be claimed in subsequent years unless the property on which the exemption applies changes ownership or no longer qualifies for the exemption. These exemptions include an exemption from taxation of the total appraised value of a 100% disabled veteran's homestead and their surviving spouses, and an exemption from taxation of a percentage of the appraised value of a disabled veteran's residence homestead equal to the disabled veteran's disability rating if the residence homestead was donated to the disabled veteran by a charitable organization at no cost to the disabled veteran and their surviving spouses.
Senate Bill 918 would add to this list the exemption under Section 11.23 (a), that is an exemption from taxation of each of the buildings (including the land that is reasonably necessary for use of, access to, and ornamentation of the buildings) and other property owned and primarily used by a nonprofit organization that is composed primarily of members or former members of the armed forces of the United States or its allies and that is chartered or incorporated by the United States Congress, if the property is not used to produce revenue or held for gain.
The second chamber sponsor is Representative John Otto.
Vote Recommendation Notes
No amendments or modifications have been made to the bill since we reported on it. We continue to support it.
First chamber analysis below:
Senate Bill 918 would not make any changes to the taxation system or to current exemptions.
Senate Bill 918 would only add the exemption on property owned by certain nonprofit veterans organizations to the list of exemptions that, once allowed, do not need to be claimed in subsequent years, unless the property on which the exemption applies changes ownership or no longer qualifies for the exemption.
This will allow these nonprofit veterans organizations to not worry about claiming the exemption each year, streamlining the process on the side of these organizations and government. We support Senate Bill 918.
This is an entirely procedural bill which would amend the process for organizations claiming a tax exemption which they've already qualified for. It does not create a new tax exemption. Our support for improving the efficiency of government procedures should not be confused with support for special interest subsidies that are ultimately paid for by the taxpayers.