SUBTITLE C
TAXABLE PROPERTY AND EXEMPTIONS
CHAPTER
11
TAXABLE PROPERTY AND EXEMPTIONS
Section
11.25. MarineCargoContainers UsedExclusivelyinInter nationalCommerce.
11.251. TangiblePersonalPropertyExempt. 11.252. MotorVehiclesLeasedforPersonalUse. 11.253. TangiblePersonalPropertyinTransit.
11.254. MotorVehicleUsedforProductionofIncomeandfor PersonalActivities.
11.26. LimitationofSchoolTaxonHomesteadsofElderlyor Disabled.
11.261. Limitation of County, Municipal, or Junior College DistrictTaxonHomesteadsofDisabledandElderly. 11.27. SolarandWind-PoweredEnergyDevices.
11.271. OffshoreDrillingEquipmentNotinUse.
11.28. PropertyExemptedfromCityTaxationbyAgreement. 11.29. IntracoastalWaterwayDredgeDisposalSite. 11.30. NonprofitWaterSupplyorWastewaterServiceCorpo
ration.
11.31. PollutionControlProperty.
11.311. [2Versions:EffectiveUntilJanuary1,2016]Tempo rary Exemption: Landfill-Generated Gas Conver sionFacilities.
11.311. [2Versions:EffectiveJanuary1,2016]Landfill-Gen eratedGasConversionFacilities.
11.315. EnergyStorageSysteminNonattainmentArea. 11.32. CertainWaterConservationInitiatives.
11.33. RawCocoaandGreenCoffeeHeldinHarrisCounty. 11.34. Limitation ofTaxeson RealPropertyin Designated
AreasofCertainMunicipalities. 11.35to11.40.[Reserved].
SubchapterC.AdministrationofExemptions
11.41. PartialOwnershipofExemptProperty. 11.42. ExemptionQualificationDate.
11.421. QualificationofReligiousOrganization. 11.422. QualificationsofaSchool.
11.423. QualificationofCharitableOrganizationorYouthAs sociation.
11.424. ConflictBetween GoverningRegulationofNonprofit Organization,Association,orEntity andContract withUnitedStates.
11.43. ApplicationforExemption.
11.431. LateApplicationforHomesteadExemption. 11.432. HomesteadExemptionforManufacturedHome. 11.433. Late Applicationfor Religious Organization Exemp
tion.
11.434. LateApplicationforaSchoolExemption.
11.435. LateApplicationforCharitableOrganizationExemp tion.
11.436. ApplicationforExemption ofCertain PropertyUsed forLow-IncomeHousing.
11.437. ExemptionforCottonStoredinWarehouse.
11.438. Late Applicationfor Veteran’s Organization Exemp tion.
11.439. LateApplicationforDisabledVeteransExemption. 11.4391. LateApplicationforFreeportExemption.
11.44. NoticeofApplicationRequirements. 11.45. ActiononExemptionApplications. 11.46. CompilationofPartialExemptions. 11.47. MailSurveyofResidenceHomesteads. 11.48. ConfidentialInformation. 11.11. 11.111. 11.12. 11.13. 11.131. 11.132. 11.133. 11.135. 11.14. 11.142. 11.145. 11.146. 11.15. 11.16. 11.161. 11.17. 11.18. 11.1801. 11.181. 11.182. 11.1825. 11.1826. 11.1827. 11.183. 11.184. 11.185. 11.19. 11.20. 11.201. 11.21. 11.22. 11.23. 11.231. 11.24.
SubchapterA.TaxableProperty Section
11.01. RealandTangiblePersonalProperty. 11.02. IntangiblePersonalProperty. 11.03to11.10.[Reserved].
SubchapterB.Exemptions
PublicProperty.
PublicPropertyUsedtoProvideTransitionalHousing forIndigentPersons.
FederalExemptions. ResidenceHomestead.
ResidenceHomestead of100 Percentor TotallyDis abledVeteran.
DonatedResidence Homestead ofPartially Disabled Veteran.
ResidenceHomesteadofSurvivingSpouseofMember ofArmedServicesKilledinAction.
Continuation of Residence Homestead Exemption WhileReplacementStructureIsConstructed;Sale ofProperty.
TangiblePersonalPropertyNotProducingIncome. TravelTrailers[Repealed].
Income-ProducingTangiblePersonalPropertyHaving ValueofLessThan$500.
MineralInterestHavingValueofLessThan$500. FamilySupplies.
FarmProducts.
ImplementsofHusbandry. Cemeteries.
CharitableOrganizations.
CharityCareandCommunityBenefitsRequirements forCharitableHospital.
Charitable Organizations Improving Property for Low-IncomeHousing.
CommunityHousingDevelopmentOrganizationsIm proving Property for Low-Income and Moderate- IncomeHousing:PropertyPreviouslyExempt. Organizations Constructing or Rehabilitating Low-
IncomeHousing:PropertyNotPreviouslyExempt. MonitoringofCompliancewithLow-IncomeandMod
erate-IncomeHousingExemptions. CommunityLandTrust.
Association Providing Assistance to Ambulatory HealthCareCenters.
OrganizationsEngagedPrimarilyinPerformingChar itableFunctions.
ColoniaModelSubdivisionProgram.
Youth Spiritual, Mental, and Physical Development Associations.
ReligiousOrganizations.
AdditionalTaxonSaleofCertainReligiousOrganiza tionProperty.
Schools.
DisabledVeterans. MiscellaneousExemptions.
NonprofitCommunityBusinessOrganizationProvid ingEconomicDevelopmentServicestoLocalCom munity.
SUBCHAPTERA TAXABLEPROPERTY
Sec. 11.01. Real and Tangible Personal Property.
(a) Allrealandtangiblepersonalpropertythatthisstatehasjurisdictiontotaxistaxableunlessexemptbylaw. (b) Thisstatehasjurisdictiontotaxrealpropertyiflocatedinthisstate.
(c) Thisstatehasjurisdictiontotaxtangiblepersonalpropertyifthepropertyis: (1) locatedinthisstateforlongerthanatemporaryperiod;
(2) temporarilylocatedoutsidethisstateandtheownerresidesinthisstate;or (3) usedcontinually,whetherregularlyorirregularly,inthisstate.
(d) Tangiblepersonalpropertythatisoperatedorlocatedexclusivelyoutsidethisstateduringtheyearprecedingthe taxyearandonJanuary1ofthetaxyearisnottaxableinthisstate.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1980;am.Acts1983,68thLeg.,ch.353 (H.B.1748),§ 1,effectiveJanuary1,1984;am.Acts1989,71stLeg.,ch.534(H.B.2959),§ 2,effectiveJanuary1,1990.)
Sec. 11.02. Intangible Personal Property.
(a) ExceptasprovidedbySubsection(b)ofthissection,intangiblepersonalpropertyisnottaxable.
(b) IntangiblepropertygovernedbyArticle4.01,InsuranceCode,orbySection89.003,FinanceCode,istaxableas providedbylaw,unlessexemptbylaw,ifthisstatehasjurisdictiontotaxthoseintangibles.
(c) Thisstatehasjurisdictiontotaxintangiblepersonalpropertyifthepropertyis: (1) ownedbyaresidentofthisstate;or
(2) locatedinthisstateforbusinesspurposes.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1980;am.Acts1984,68thLeg.,2ndC.S., ch.31(H.B.122),art.3,partA, § 1,effectiveJanuary1,1985;am.Acts1999,76thLeg.,ch.62(S.B.1368),§ 7.88, effectiveSeptember1,1999.)
Secs. 11.03 to 11.10. [Reserved for expansion].
SUBCHAPTERB EXEMPTIONS
Sec. 11.11. Public Property.
(a) ExceptasprovidedbySubsections(b)and(c)ofthissection,propertyownedbythisstateorapoliticalsubdivision ofthisstateisexemptfromtaxationifthepropertyisusedforpublicpurposes.
(b) LandownedbythePermanentUniversityFundistaxableforcountypurposes.AnynoticerequiredbySection 25.19ofthiscodeshallbesenttothecomptroller,andthecomptrollershallappearinbehalfofthestateinanyprotest orappealrelatingtotaxationofPermanentUniversityFundland.
(c) AgriculturalorgrazinglandownedbyacountyforthebenefitofpublicschoolsunderArticleVII,Section6,ofthe TexasConstitutionistaxableforallpurposes.Thecountyshallpaythetaxesonthelandfromtherevenuederivedfrom theland.Ifrevenuefromthelandisinsufficienttopaythetaxes,thecountyshall paythebalancefromthecounty generalfund.
(d) Propertyownedbythestatethatisnotusedforpublicpurposesistaxable.Propertyownedbyastateagencyor institutionis notusedforpublicpurposesifthepropertyis rentedorleasedforcompensationtoaprivatebusiness enterprisetobeusedbyitforapurposenotrelatedtotheperformanceofthedutiesandfunctionsofthestateagency orinstitution orused toprovide privateresidential housingfor compensationto membersof the publicotherthan studentsandemployeesofthestateagencyorinstitutionowningtheproperty,unlesstheresidentialuseissecondary toitsusebyaneducationalinstitutionprimarilyforinstructionalpurposes.AnynoticerequiredbySection25.19ofthis codeshallbesenttotheagencyorinstitutionthatownstheproperty,anditshallappearinbehalfofthestateinany protestorappealrelatedtotaxationoftheproperty.
(e) Propertythatisheldordedicatedforthesupport,maintenance,orbenefitofaninstitutionofhighereducation as defined by Section 61.003, EducationCode, but is not rented orleased for compensation to a private business enterpriseto beused byit fora purpose notrelated tothe performanceof the dutiesand functionsof thestate or institutionorisnotrentedorleasedtoprovideprivateresidentialhousingtomembersofthepublicotherthanstudents andemployeesofthestateorinstitutionisnottaxable.Ifaportionofpropertyofaninstitutionofhighereducationis usedforpublicpurposesandaportionisnotusedforthosepurposes,theportionofthepropertyusedforpublicpurposes isexemptunderthissubsection.Alloil,gas,andothermineralinterestsownedbyaninstitutionofhighereducation are exemptfrom allad valorem taxes.Propertybequeathed toaninstitution is exemptfrom the assessmentof ad valoremtaxesfromthedateofthedecedent’sdeath,unless:
(1) thepropertyisleasedforcompensationtoaprivatebusinessenterpriseasprovidedinthissubsection;or (2) thetransferofthepropertytoaninstitutioniscontestedin aprobatecourt,in whichcase advalorem taxes shallbeassessedtotheestateofthedecedentuntilthefinaldeterminationofthedispositionofthepropertyismade. Thepropertyisexemptfromtheassessmentofadvaloremtaxesuponvestingofthepropertyintheinstitution.
(f) Propertyofahighereducationdevelopmentfoundationoranalumniassociationthatislocatedonlandownedby the state for the support,maintenance, or benefitof aninstitution of higher educationas defined in Chapter 61, EducationCode,isexemptfromtaxationif:
(1) thefoundationororganizationmeetstherequirementsofSections11.18(e)and(f)andisorganizedexclusively tooperateprogramsorperformotheractivitiesforthebenefitofinstitutionsofhighereducation;and
(2) thepropertyisusedexclusivelyinthoseprogramsoractivities.
(g) Forpurposesofthissection,animprovementisownedbythestateandisusedforpublicpurposesifitis: (1) locatedonlandownedbytheTexasDepartmentofCriminalJustice;
(2) leasedandusedbythedepartment;and
(3) subjecttoalease-purchaseagreementprovidingthatlegaltitletotheimprovementpassestothedepartment attheendoftheleaseperiod.
(h) Forpurposesofthissection,tangiblepersonalpropertyisownedbythisstateorapoliticalsubdivisionofthis stateifitissubjecttoa lease-purchaseagreementproviding thatthestateorpoliticalsubdivision,asapplicable,is entitledtocompeldeliveryofthelegaltitletothepropertytothestateorpoliticalsubdivision,asapplicable,attheend oftheleaseterm.Thepropertyceasestobeownedbythestateorpoliticalsubdivision,asapplicable,if,notlaterthan the30thdayafterthedatetheleaseterminates,thestateorpoliticalsubdivision,asapplicable,doesnotexerciseits righttoacquirelegaltitletotheproperty.
(i) Acorporation organizedundertheTexas Non-ProfitCorporationAct(Article1396-1.01etseq.,Vernon’sTexas Civil Statutes), ora successor statute, that engages primarily in providing chilled water and steam to aneligible institution,asdefined bySection301.031, HealthandSafetyCode,isentitledtoanexemptionfromtaxationofthe propertythecorporationownsasthoughthepropertyofthecorporationwereownedbythisstateandusedforhealth oreducationalpurposes.
(j) Forpurposesofthissection,anyportionofafacilityownedbytheTexasDepartmentofTransportationthatisa railfacilityorsystemorisahighwayinthestatehighwaysystem,andthatislicensedorleasedtoaprivateentityby thatdepartmentunderChapter91or223,TransportationCode,ispublicpropertyusedforapublicpurposeiftherail facilityorsystem,highway,orfacilityisoperatedbytheprivateentitytoprovidetransportationorutilityservices.Any partofafacility,railfacilityorsystem,orstatehighwaythatislicensedorleasedtoaprivateentityforacommercial purposeisnotexemptfromtaxation.
(EnactedbyActs1979,66thLeg.,ch.841(S.B.621),§ 1,effectiveJanuary1,1980;am.Acts1981,67thLeg.,1stC.S., ch.13(H.B.30),§ 30,effectiveJanuary1,1984;am.Acts1983,68thLeg.,ch.851(H.B.1203),§ 5,effectiveAugust29, 1983;am.Acts1983,68thLeg.,ch.1007(H.B.2156),§ 1,effectiveJanuary1,1984;am.Acts1989,71stLeg.,ch.796 (H.B.432),§ 14,effectiveJanuary1,1990;am.Acts1989,71st Leg.,ch.1021(H.B.1078),§ 1,effectiveAugust28, 1989;am.Acts1990,71stLeg.,6thC.S.,ch.12(S.B.51),§ 2(31),effectiveSeptember6,1990;am.Acts1991,72ndLeg., 2ndC.S.,ch.6(S.B.45),§ 9,effectiveSeptember1,1991;am.Acts1997,75thLeg.,ch.843(H.B.846),§ 1,effective January1,1998;am.Acts2001,77thLeg.,ch.362(S.B.1189),§ 1,effectiveMay26,2001;am.Acts2003,78thLeg., ch.1266(S.B.1652),§ 1.01,effectiveJune21,2003;am.Acts2005,79thLeg.,ch.281(H.B.2702),§ 2.95,effectiveJune 14,2005;am.Acts2007,80thLeg.,ch.204(S.B.812),§ 1,effectiveJanuary1,2008;am.Acts2009,81stLeg.,ch.87 (S.B.1969),§ 25.152,effectiveSeptember1,2009;am.Acts2011,82ndLeg.,ch.259(H.B.1201),§ 1,effectiveJune17, 2011.)
Sec. 11.111. Public Property Used to Provide Transitional Housing for Indigent Persons.
(a) The governingbodyof a taxingunitbyordinance ororder mayexemptfromad valorem taxationresidential propertyownedbytheUnitedStatesoranagencyoftheUnitedStatesandusedtoprovidetransitionalhousingforthe indigentunderaprogramoperatedordirectedbytheUnitedStatesDepartmentofHousingandUrbanDevelopment. (b) For purposes of this section, transitional housing for indigent individuals is housing provided at no cost or nominalcosttoanindigentindividualorfamilyduringatemporaryperiodinwhichtheindividualoramemberofthe familyparticipatesinajobtrainingprogram,jobplacementprogram,orotherprogramintendedtoassisttheindividual orfamilytobecomeself-sufficient.
(c) TheexemptionprovidedbythissectionapplieseveniftheUnitedStatesoritsagencyleasesthepropertytoa nonprofit organization in return for the organization’s assistance in operatingthe program toprovide transitional housing,aslongastheleasedoesnotrequirethenonprofitorganizationtopaymorethananominalamounttolease theproperty.
(EnactedbyActs1991,72ndLeg.,ch.762,§13,effectiveJanuary1,1992.)
Sec. 11.12. Federal Exemptions.
Propertyexemptfromadvaloremtaxationbyfederallawisexemptfromtaxation. (EnactedbyActs1979,66thLeg.,ch.841,§1,effectiveJanuary1,1980.)
Sec. 11.13. Residence Homestead.
(a) AfamilyorsingleadultisentitledtoanexemptionfromtaxationforthecountypurposesauthorizedinArticle VIII,Section1-a,oftheTexasConstitutionof$3,000oftheassessedvalueofhisresidencehomestead.
(b) [2Versions:EffectiveunlessanduntilActs2015,84thLeg.,S.J.R.No.1isapprovedbyvotersandthe ballotcertified—SeeEditor’sNote]Anadultisentitledtoexemptionfromtaxationbyaschooldistrictof$15,000 oftheappraisedvalueoftheadult’sresidencehomestead,exceptthat$10,000oftheexemptiondoesnotapplytoan entityoperatingunderformerChapter17,18,25,26,27,or28,EducationCode,asthosechaptersexistedonMay1, 1995,aspermittedbySection11.301,EducationCode.
(b) [2 Versions: Proposed amendment by Acts 2015, 84th Leg., S.J.R. No. 1, Contingent on Voter Approval—SeeEditor’sNote]Anadultisentitledtoexemptionfromtaxationbyaschooldistrictof$25,000ofthe appraised value of the adult’s residence homestead, exceptthat only $5,000 of the exemption applies to anentity operatingunderformerChapter17,18,25,26,27,or28,EducationCode,asthosechaptersexistedonMay1,1995,as permittedbySection11.301,EducationCode.
(c) InadditiontotheexemptionprovidedbySubsection(b)ofthissection,anadultwhoisdisabledoris65orolder is entitled to an exemption from taxation by a school district of $10,000 of the appraised value of his residence homestead.
(d) InadditiontotheexemptionsprovidedbySubsections(b)and(c)ofthissection,anindividualwhoisdisabledor is65orolderisentitledtoanexemptionfromtaxationbyataxingunitofaportion(theamountofwhichisfixedas providedbySubsection(e)ofthissection)oftheappraisedvalueofhisresidencehomesteadiftheexemptionisadopted either:
(1) bythegoverningbodyofthetaxingunit;or
(2) byafavorablevoteofamajorityofthequalifiedvotersofthetaxingunitatanelectioncalledbythegoverning bodyofataxingunit,andthegoverningbodyshallcalltheelectiononthepetitionofatleast20percentofthenumber ofqualifiedvoterswhovotedintheprecedingelectionofthetaxingunit.
(e) TheamountofanexemptionadoptedasprovidedbySubsection(d)ofthissectionis$3,000oftheappraisedvalue oftheresidencehomesteadunlessalargeramountisspecifiedby:
(1) thegoverningbodyauthorizingtheexemptioniftheexemptionisauthorizedasprovidedbySubdivision(1)of Subsection(d)ofthissection;or
(2) thepetitionfortheelectioniftheexemptionisauthorizedasprovidedbySubdivision(2)ofSubsection(d)ofthis section.
(f) Onceauthorized,anexemptionadoptedasprovidedbySubsection(d)ofthissectionmayberepealedordecreased orincreasedinamountbythegoverningbodyofthetaxingunitorbytheprocedureauthorizedbySubdivision(2)of Subsection(d)ofthissection.Inthecaseofadecrease,theamountoftheexemptionmaynotbereducedtolessthan $3,000ofthemarketvalue.
(g) IftheresidencehomesteadexemptionprovidedbySubsection(d)ofthissectionisadoptedbyacountythatlevies ataxforthecountypurposesauthorizedbyArticleVIII,Section1-a,oftheTexasConstitution,theresidencehomestead exemptionsprovidedbySubsections(a)and(d)ofthissectionmaynotbeaggregatedforthecountytaxpurposes.An individual who is eligible for both exemptions is entitled to take only the exemption authorized as provided by Subsection(d)ofthissectionforpurposesofthatcountytax.
(h) Joint,community,orsuccessiveownersmaynoteachreceivethesameexemptionprovidedbyorpursuanttothis sectionfor thesame residencehomestead inthe same year.Aneligible disabledpersonwhois 65orolder maynot receivebothadisabledandanelderlyresidencehomesteadexemptionbutmaychooseeither.Apersonmaynotreceive anexemptionunderthissectionformorethanoneresidencehomesteadinthesameyear.
(i) TheassessorandcollectorforataxingunitmaydisregardtheexemptionsauthorizedbySubsection(b),(c),(d), or(n) ofthissection andassess andcollecta taxpledgedfor paymentofdebtwithout deductingthe amountofthe exemptionif:
(1) priortoadoptionoftheexemption,theunitpledgedthetaxesforthepaymentofadebt;and (2) grantingtheexemptionwouldimpairtheobligationofthecontractcreatingthedebt. (j) Forpurposesofthissection:
(1) [2Versions:EffectiveUntilJanuary1,2016]‘‘Residencehomestead’’meansastructure(includingamobile home)oraseparatelysecuredandoccupiedportionofastructure(togetherwiththeland,nottoexceed20acres,and improvementsusedintheresidentialoccupancyofthestructure,ifthestructureandthelandandimprovements haveidenticalownership)that:
(A) isownedbyoneormoreindividuals,eitherdirectlyorthroughabeneficialinterestinaqualifyingtrust; (B) isdesignedoradaptedforhumanresidence;
(C) isusedasaresidence;and
(D) isoccupiedastheindividual’sprincipalresidencebyanowneror,forpropertyownedthroughabeneficial interestinaqualifyingtrust,byatrustororbeneficiaryofthetrustwhoqualifiesfortheexemption.
(1) [2Versions:EffectiveJanuary1,2016]‘‘Residencehomestead’’meansastructure(includingamobilehome) or a separately securedand occupied portion of a structure(togetherwith the land, not to exceed 20acres, and improvementsusedin theresidentialoccupancyofthestructure,ifthestructureandthe landandimprovements haveidenticalownership)that:
(A) isownedbyoneormoreindividuals,eitherdirectlyorthroughabeneficialinterestinaqualifyingtrust; (B) isdesignedoradaptedforhumanresidence;
(D) isoccupiedastheindividual’sprincipalresidencebyanowner,byanowner’ssurvivingspousewhohasalife estateintheproperty,or, forpropertyownedthrougha beneficialinterestina qualifyingtrust,bya trustoror beneficiaryofthetrustwhoqualifiesfortheexemption.
(2) ‘‘Trustor’’meansapersonwhotransfersaninterestinrealorpersonalpropertytoaqualifyingtrust,whether duringtheperson’slifetimeoratdeath,ortheperson’sspouse.
(3) ‘‘Qualifyingtrust’’meansatrust:
(A) inwhichtheagreement,will,orcourtordercreatingthetrust,aninstrumenttransferringpropertytothe trust,oranyotheragreementthatisbindingonthetrusteeprovidesthatthetrustorofthetrustorabeneficiary ofthetrusthastherighttouseandoccupyasthetrustor’sorbeneficiary’sprincipalresidenceresidentialproperty rentfreeandwithout chargeexceptfortaxesandothercostsand expensesspecifiedintheinstrument orcourt order:
(i) forlife;