| (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Local charitable organization--An organization that is a chapter, subsidiary, or branch of a statewide charitable organization and that is engaged primarily in performing functions that are listed in Tax Code, §11.18(d). (2) Statewide charitable organization--An organization that is statewide and that is engaged primarily in performing functions that are listed in Tax Code, §11.18(d). (b) A taxing unit may adopt a tax exemption for property that a statewide or local charitable organization owns if the property is used exclusively by the charitable organization or by other organizations that are eligible for tax exemption under Tax Code, §11.18 or §11.184, except as provided in subsection (c) of this section. The exemption may be adopted either by the governing body of the taxing unit or by the voters at an election that is called by the governing body of a taxing unit. (c) Use of exempt property by persons who are not charitable organizations eligible for exemption does not result in the loss of an exemption authorized by this section if the use is incidental to use by those charitable organizations and limited to activities that benefit the charitable organization that owns or uses the property. (d) An organization that seeks a tax exemption under this section must obtain from the comptroller and submit with its application a determination letter that verifies that the organization is exempt from sales tax and, if applicable, franchise tax, as a charitable organization. For information or procedures on obtaining a determination letter from the comptroller, see §3.322 of this title (relating to Exempt Organizations) and other publications that the comptroller issues. (e) A determination by the comptroller that a statewide charitable organization is exempt from sales tax and, if applicable, franchise tax, will also constitute a determination of exempt status for any local charitable organizations that have been identified in the statewide charitable organization's application for determination. The comptroller will send a determination letter to that statewide organization and to any subchapters that are included in the statewide organization's application. (f) An organization must submit a copy of the comptroller's determination letter to the chief appraiser at the same time that the organization submits its application for property tax exemption. The chief appraiser shall determine if the charitable organization is using its property exclusively for charitable activities. (g) An organization must comply with the filing requirements for application for property tax exemption that are stated in Tax Code, §11.43(d). A request to the comptroller for a determination letter for purposes of compliance with subsection (d) of this section does not automatically extend the filing due date of April 30. (1) If an organization has not received a determination letter from the comptroller, the organization may use the following procedure to request that the chief appraiser extend the filing due date for an application for exemption. (A) The organization must submit to the chief appraiser a written request for an extension by no later than April 1; (B) The request for extension should state that the organization has submitted a request for a determination letter to the comptroller and should have as an attachment a copy of the request for determination letter that the organization submitted to the comptroller; (C) The chief appraiser shall grant the organization's request for extension for a period of not longer than 60 days if the organization has complied with subparagraphs (A) and (B) of this paragraph; (D) The chief appraiser may verify with the comptroller that a request for a determination letter has been submitted. (2) Notwithstanding paragraph (1) of this subsection, the chief appraiser may extend the deadline for filing an application for exemption at any time under the authority provided by Tax Code, §11.43. (h) If the chief appraiser, upon receipt of the application for tax exemption, disagrees with the comptroller's determination, then the chief appraiser may request a review of the determination by submitting a written request to the comptroller. (1) The written request for reconsideration must be directed to the manager of the Property Tax Division, must contain specific grounds on which the chief appraiser disagrees with the comptroller's determination, and must be accompanied by specific evidence that supports each ground that the chief appraiser asserts. (2) The comptroller will respond to the written request for reconsideration within 30 calendar days from the date on which the request for reconsideration was received. (3) The comptroller's decision to uphold the determination is conclusive evidence that an organization is engaged primarily in performing charitable function. The decision is not subject to further appeal. (i) An exemption under this section expires at the end of the fifth tax year after the year in which the exemption is granted. The organization may obtain a new determination letter and reapply for the exemption. (j) An application for exemption must be substantially in the form of the Application for Primarily Charitable Organization Property Tax Exemption (Form 50-299). The comptroller adopts this form by reference. Copies of the form are available for inspection at the office of the Texas Register or may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711. Copies may also be requested by calling our toll-free number, 1-800-252-9121. In Austin, call (512) 305-9999. From a Telecommunications Device for the Deaf (TDD), call 1-800-248-4099, toll free. In Austin, the local TDD number is (512) 463-4621. |
