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HB 2525

Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.

89th Legislature (2025) Introduced by Tom Craddick and 5 co-sponsors

Texas exempts nonprofit senior housing properties from property taxes if serving residents 62+, effective January 1, 2026, reducing local government revenue.

Effective on 1/1/26
#assistedlivingfacilities(s0617) #aging(i0015) #charitable&nonprofitorganizations(i0055) #health--indigenthealthcare(i0386) #nursinghomes(i0539) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 2525

Legislative bill overview

HB 2525 exempts certain properties owned by charitable organizations from ad valorem (property) taxation if those properties provide housing and related facilities/services exclusively to residents age 62 and older. The bill became effective January 1, 2026, and applies to qualifying senior housing developments operated by nonprofits.

Why is this important

Property tax exemptions reduce operating costs for senior housing providers, potentially making affordable senior housing more available and sustainable in Texas. This affects both charitable organizations' financial planning and local tax bases, as exempted properties no longer contribute to county and school district revenue.

Potential points of contention

  • Local revenue impact: Schools and counties lose tax revenue from exempted properties, potentially affecting funding for public services in communities with significant senior housing development
  • "Charitable organization" definition: The bill's criteria for qualifying organizations may be narrow or ambiguous, creating disputes over which senior housing developments qualify for exemptions
  • Market fairness: For-profit senior housing operators may argue the exemption creates unequal competitive conditions between nonprofit and commercial senior housing providers

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

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