Texas HB131 amends tax code to modify exemption from ad valorem taxation for property owned by charitable organizations.

Texas HB131 amends the Tax Code to modify the exemption from ad valorem taxation for property owned by organizations engaged primarily in performing charitable functions. The bill requires organizations to reapply for the exemption after five years and mandates automatic reinstatement for expired exemptions if certain conditions are met. It also specifies that the exemption applies until the property changes ownership or the organization's qualification changes. The changes take effect January 1, 2026.

Texas HB131 amends tax code to modify exemption from ad valorem taxation for property owned by charitable organizations.

Texas HB131 amends the Tax Code to modify the exemption from ad valorem taxation for property owned by organizations engaged primarily in performing charitable functions. The bill requires organizations to reapply for the exemption after five years and mandates automatic reinstatement for expired exemptions if certain conditions are met. It also specifies that the exemption applies until the property changes ownership or the organization's qualification changes. The changes take effect January 1, 2026.