Sec. 11.231. NONPROFIT COMMUNITY BUSINESS ORGANIZATION PROVIDING ECONOMIC DEVELOPMENT SERVICES TO LOCAL COMMUNITY. (a) In this section, "nonprofit community business organization" means an organization that meets the following requirements:
(1) the organization has been in existence for at least the preceding five years;
(2) the organization:
(A) is a nonprofit corporation organized under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) or a nonprofit corporation formed under the Texas Nonprofit Corporation Law, as described by Section 1.008, Business Organizations Code;
(B) is a nonprofit organization described by Section 501(c)(6), Internal Revenue Code of 1986; and
(C) is not a statewide organization;
(3) for at least the preceding three years, the organization has maintained a dues-paying membership of at least 50 members; and
(4) the organization:
(A) has a board of directors elected by the members;
(B) does not compensate members of the board of directors for service on the board;
(C) with respect to its activities in this state, is engaged primarily in performing functions listed in Subsection (d);
(D) is primarily supported by membership dues and other income from activities substantially related to its primary functions; and
(E) is not, has not formed, and does not financially support a political committee as defined by Section 251.001, Election Code.
(a-1) In addition to an organization described by Subsection (a), in this section, "nonprofit community business organization" also means a Type A corporation governed by Chapter 504, Local Government Code, and a Type B corporation governed by Chapter 505, Local Government Code.
(b) An association that qualifies as a nonprofit community business organization as provided by this section is entitled to an exemption from taxation of:
(1) the buildings and tangible personal property that:
(A) are owned by the nonprofit community business organization; and
(B) except as permitted by Subsection (c), are used exclusively by qualified nonprofit community business organizations to perform their primary functions; and
(2) the real property owned by the nonprofit community business organization consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other physical preparation; and
(ii) is designed and intended to be used exclusively by qualified nonprofit community business organizations; and
(B) the land on which the incomplete improvement is located that will be reasonably necessary for the use of the improvement by qualified nonprofit community business organizations.
(c) Use of exempt property by persons who are not nonprofit community business organizations qualified as provided by this section does not result in the loss of an exemption authorized by this section if the use is incidental to use by qualified nonprofit community business organizations and limited to activities that benefit the beneficiaries of the nonprofit community business organizations that own or use the property.
(d) To qualify for an exemption under this section, a nonprofit community business organization must be engaged primarily in performing one or more of the following functions in the local community:
(1) promoting the common economic interests of commercial enterprises;
(2) improving the business conditions of one or more types of business; or
(3) otherwise providing services to aid in economic development.
(e) In this section, "building" includes the land that is reasonably necessary for use of, access to, and ornamentation of the building.
(f) A property may not be exempted under Subsection (b)(2) for more than three years.
(g) For purposes of Subsection (b)(2), an incomplete improvement is under physical preparation if the nonprofit community business organization has:
(1) engaged in architectural or engineering work, soil testing, land clearing activities, or site improvement work necessary for the construction of the improvement; or
(2) conducted an environmental or land use study relating to the construction of the improvement.
Added by Acts 2009, 81st Leg., R.S., Ch. 1417 (H.B. 770), Sec. 3, eff. January 1, 2010.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1255 (H.B. 1905), Sec. 20(a), eff. January 1, 2016.
Structure Texas Statutes
Subtitle C - Taxable Property and Exemptions
Chapter 11 - Taxable Property and Exemptions
Section 11.11. Public Property
Section 11.111. Public Property Used to Provide Transitional Housing for Indigent Persons
Section 11.12. Federal Exemptions
Section 11.13. Residence Homestead
Section 11.131. Residence Homestead of 100 Percent or Totally Disabled Veteran
Section 11.132. Donated Residence Homestead of Partially Disabled Veteran
Section 11.134. Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty
Section 11.14. Tangible Personal Property Not Producing Income
Section 11.141. Precious Metal Held in Precious Metal Depository
Section 11.145. Income-Producing Tangible Personal Property Having Value of Less Than $2,500
Section 11.146. Mineral Interest Having Value of Less Than $500
Section 11.15. Family Supplies
Section 11.161. Implements of Husbandry
Section 11.18. Charitable Organizations
Section 11.1801. Charity Care and Community Benefits Requirements for Charitable Hospital
Section 11.181. Charitable Organizations Improving Property for Low-Income Housing
Section 11.1826. Monitoring of Compliance With Low-Income and Moderate-Income Housing Exemptions
Section 11.1827. Community Land Trust
Section 11.183. Association Providing Assistance to Ambulatory Health Care Centers
Section 11.184. Organizations Engaged Primarily in Performing Charitable Functions
Section 11.185. Colonia Model Subdivision Program
Section 11.19. Youth Spiritual, Mental, and Physical Development Associations
Section 11.20. Religious Organizations
Section 11.201. Additional Tax on Sale of Certain Religious Organization Property
Section 11.211. Real Property Leased to Certain Schools
Section 11.22. Disabled Veterans
Section 11.23. Miscellaneous Exemptions
Section 11.25. Marine Cargo Containers Used Exclusively in International Commerce
Section 11.251. Tangible Personal Property Exempt
Section 11.252. Motor Vehicles Leased for Use Other Than Production of Income
Section 11.253. Tangible Personal Property in Transit
Section 11.254. Motor Vehicle Used for Production of Income and for Personal Activities
Section 11.26. Limitation of School Tax on Homesteads of Elderly or Disabled
Section 11.27. Solar and Wind-Powered Energy Devices
Section 11.271. Offshore Drilling Equipment Not in Use
Section 11.28. Property Exempted From City Taxation by Agreement
Section 11.29. Intracoastal Waterway Dredge Disposal Site
Section 11.30. Nonprofit Water Supply or Wastewater Service Corporation
Section 11.31. Pollution Control Property
Section 11.311. Landfill-Generated Gas Conversion Facilities
Section 11.315. Energy Storage System in Nonattainment Area
Section 11.32. Certain Water Conservation Initiatives
Section 11.33. Raw Cocoa and Green Coffee Held in Harris County
Section 11.34. Limitation of Taxes on Real Property in Designated Areas of Certain Municipalities
Section 11.35. Temporary Exemption for Qualified Property Damaged by Disaster