HB 5478

relating to the exemption from ad valorem taxation of property
owned by an organization engaged primarily in performing charitable
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 11.184, Tax Code, is amended by amending
Subsection (k) and adding Subsections (k-1), (k-2), (k-3), and
(k)  An exemption under this section expires when:
(1)  the organization no longer owns the property
described by Subsection (c); or
(2)  the comptroller determines based on the factors
provided by Subsection (e) that the organization no longer
qualifies for an exemption [at the end of the fifth tax year after
the year in which the exemption is granted. To continue to receive
an exemption under this section after that year, the organization
must obtain a new determination letter and reapply for the
(k-1)  An organization receiving an exemption under this
section shall notify the comptroller and the chief appraiser of  the
appraisal district established for the county in which the  exempt
property is located of each of the following material  changes not
later than the 30th day after the date the material change occurs:
(1)  the organization sells or otherwise disposes of
the  property that is subject to the exemption;
(2)  the Internal Revenue Service determines that the
organization is no longer an exempt entity under Section 501(c)(3),
Internal Revenue Code of 1986; or
(3)  the organization no longer qualifies for an
exemption under Section 151.310.
(k-2)  Notwithstanding Subsection (k), an organization that
received an exemption granted under this section that expired
before September 1, 2023, is entitled to an automatic reinstatement
of the expired exemption under this section for each tax year
following the tax year in which the exemption expired if the
(1)  still owns the property that was exempt from
(2)  has a valid determination letter issued by the
comptroller under Subsection (f); and
(3)  submits a written request to the chief appraiser
of the appraisal district established for the county in which the
exempt property is located that includes:
(A)  proof that the organization was previously
granted an exemption under this section for the property that is
the subject of the request; and
(B)  a copy of the determination letter issued by
the comptroller under Subsection (f).
(k-3)  If an organization is entitled to continue to receive
an exemption under Subsection (k-2), the exemption remains in
effect until it expires as provided by Subsection (k).
(k-4)  An organization that is entitled to continue to
receive an exemption under Subsection (k-2) does not owe any tax on
the exempt property for the period starting on the date the
exemption expired under Subsection (k) and ending on the date the
organization is entitled to continue to receive the exemption under
Subsection (k-2). If the organization paid taxes on the property
during that period, the collector shall refund to the organization
the amount of tax imposed on the property. The collector shall pay
the refund not later than the 30th day after the date the chief
appraiser notifies the collector of the approval of the continued
exemption under Subsection (k-2).
SECTION 2.  Section 11.43(c), Tax Code, is amended to read as
(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, 11.184,
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, or
11.35, 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 takes effect January 1, 2026.