The Comptroller of Public Accounts proposes an amendment to §9.417, concerning applications for charitable organization property tax exemptions. Tax Code, §11.184(g) authorizes the comptroller to adopt rules to implement the section and prescribe the form of an application for a determination letter.

The proposed amendment makes changes to the rule to implement the provisions of House Bill 2555, 80th Legislature, 2009, effective January 1, 2010. The bill repeals Tax Code §11.184(b), to change the exemption for organizations engaged primarily in performing charitable functions from optional to mandatory. The bill also amends Tax Code §11.184(c) and adds subsections (l), (m) and (n) to allow corporations that do not qualify as a charitable organization under §11.18 to qualify for an exemption under this section if they are exempt from federal income taxation under certain provisions of the Internal Revenue Code. The rule, as amended, would also adopt by reference a revised Form 50-299 for application for primarily charitable organization property tax exemption and 501(c)(2) property tax exemptions. The revised rule and form provide revised requirements for an organization to receive the exemption.

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the public benefit anticipated as a result of enforcing the rule will be by clarifying the application procedures for certain property tax exemptions. The proposed amendment would have no fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Deborah Cartwright, Director, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528.

The amendment is proposed under Tax Code, §11.184, which allows the comptroller to adopt rules to implement the section.

The amendment implements Tax Code, §11.184.