The Comptroller of Public Accounts adopts an amendment to §9.417, concerning applications for charitable organization property tax exemptions, without changes to the proposed text as published in the December 18, 2009, issue of the Texas Register (34 TexReg 9107). 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 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.

No comments were received regarding adoption of the amendment.

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

The amendment implements Tax Code, §11.184.