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SJR 76

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation real property leased to certain local public entities for use as a hospital and related health care services.

89th Legislature (2025) Introduced by Roland Gutierrez

Texas constitutional amendment allowing legislatures to exempt healthcare property leases from ad valorem taxes, reducing local government revenue.

Referred to Local Government
#charitable&nonprofitorganizations(i0055) #hospitals(i0400) #propertyinterests--realproperty(i0595) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · SJR 76

Legislative bill overview

SJR 76 proposes a constitutional amendment in Texas that would allow the state legislature to exempt certain real property from ad valorem (property) taxes when that property is leased to local public entities for hospital and healthcare service operations. This amendment would require voter approval to take effect and would modify Texas's existing tax code framework.

Why is this important

Property tax exemptions directly reduce revenue for school districts, counties, and municipalities that rely on ad valorem taxes for operations. Healthcare facility tax exemptions could affect local government budgets significantly, particularly in rural areas dependent on hospital services. The amendment would give the legislature new authority to grant tax breaks specifically for healthcare real estate leasing arrangements, potentially incentivizing private investment in public hospital facilities.

Potential points of contention

  • Local budget impact: School districts and counties would lose property tax revenue from these leased healthcare properties, potentially requiring service cuts or tax increases on remaining properties
  • Equity concerns: The exemption may primarily benefit larger hospitals and private developers leasing property to public entities, raising fairness questions about who bears the tax burden
  • Scope ambiguity: The language "related health care services" is broad and could extend exemptions beyond core hospital operations to ancillary services, clinics, or administrative facilities

Compiled from official sources — confirm details with the bill’s official record.

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