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HB 4240

Relating to the exemption from ad valorem taxation of property of a charitable organization that provides financial support for medical care at certain institutions of higher education.

89th Legislature (2025) Introduced by Terri Leo-Wilson and 2 co-sponsors

HB 4240 exempts charitable organizations supporting medical care at certain Texas universities from property taxation, reducing local government revenue but supporting healthcare infrastructure.

Referred to Local Government
#charitable&nonprofitorganizations(i0055) #education--higher--healthinstitutions(i0237) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 4240

Legislative bill overview

HB 4240 creates a property tax exemption for charitable organizations that provide financial support for medical care and healthcare education at certain Texas universities. The bill allows these organizations to be exempt from ad valorem (property value-based) taxation on their property holdings, similar to existing exemptions for charitable and educational institutions.

Why is this important

Property tax exemptions reduce revenue available to local taxing units (schools, counties, municipalities) while potentially lowering costs for organizations that support medical education and healthcare services. This affects the balance between supporting healthcare infrastructure development and maintaining local government funding, particularly in communities where universities have significant medical programs.

Potential points of contention

  • Local revenue impact: Removes property tax revenue from counties, school districts, and municipalities that depend on these funds for services, potentially shifting tax burdens to other property owners
  • Scope definition: The bill's language about "certain institutions of higher education" may be ambiguous, creating questions about which universities and which charitable organizations qualify
  • Precedent for exemptions: Expanding tax exemptions for specific charitable purposes could encourage similar requests, potentially eroding the property tax base over time

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

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