The Comptroller of Public Accounts adopts a new §9.417, concerning property tax exemption for organizations engaged primarily in charitable activities, with changes to the proposed text as published in the December 28, 2001, issue of the Texas Register (26 TexReg 10801).

The new section is adopted to implement House Bill 1689, 77th Legislature, 2001, effective September 1, 2001.

No comments were received regarding adoption of the new section.

For purposes of clarity, the comptroller reformatted subsection (g) of the proposed rule by moving a part of the text to a new subsection (g)(1) and by adding a new subsection (g)(2) that references the chief appraiser's current authority under Tax Code, §11.43(d), to grant filing deadline extensions for property tax exemption applications. To maintain the structural integrity of the rule, changes were also made to the numbering of paragraphs (1)-(4) in subsection (g) of the proposed rule and to related references to those subdivisions found in subsection (g)(3) of the proposed text. The comptroller also added a line for the primary use of the property to Schedule A: Description of real property on the Application for Primarily Charitable Organization Property Tax Exemption (Form 50-299), as this line was inadvertently left off the form that was submitted with the proposed rule.

This new section is adopted under Tax Code, §5.03, which requires the comptroller to adopt rules establishing the minimum standards for the administration and operation of an appraisal district, Tax Code, §5.07, which requires the comptroller to prescribe the contents and form for the administration of the property tax system, and Tax Code, §11.43(f), which requires the comptroller to prescribe the contents and form for each kind of property tax exemption.

The new section implements Tax Code, Chapter 11, Subchapter B, §11.184.