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HB 23

Relating to the exemption from ad valorem taxation of property owned by certain nonprofit corporations, located in a populous county, and used to promote agriculture, support youth, and provide educational support in the community.

89th Legislature, 2nd Called Session (2025) Introduced by Trent Ashby and 9 co-sponsors

HB 23 exempts qualifying agriculture, youth, and education nonprofits in populous Texas counties from property taxes, effective January 1, 2026, reducing county revenue and shifting tax burden to other property owners.

Statement(s) of vote recorded in Journal
#agriculture(i0020) #business&commerce--general(i0050) #charitable&nonprofitorganizations(i0055) #education--general(i0255) #harriscounty(g0330) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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WeVote Research Nonpartisan
Bill Summary · HB 23

Legislative bill overview

HB 23 exempts certain nonprofit corporations in populous Texas counties from ad valorem (property) taxes if their property is used to promote agriculture, support youth, or provide educational community services. The bill became effective January 1, 2026, after receiving bipartisan sponsorship and gubernatorial approval.

Why is this important

Property tax exemptions directly reduce a nonprofit's operational costs, potentially allowing them to expand agricultural programs, youth initiatives, and educational services without allocating funds to local property taxes. However, this shifts the tax burden onto other property owners and reduces county revenue that typically funds schools, infrastructure, and public services.

Potential points of contention

  • Revenue impact: Counties lose tax revenue from these properties, potentially affecting funding for schools and local services that depend on ad valorem tax bases
  • Scope definition: "Promote agriculture," "support youth," and "provide educational support" are broad terms that may lead to disputes over which nonprofits qualify
  • Populous county limitation: The restriction to populous counties may create unequal treatment between rural and urban nonprofits with identical missions
  • Accountability concerns: Tax-exempt organizations may face less public scrutiny regarding how they use their tax savings or serve their communities

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

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