(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.
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