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SB 40

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 Paul Bettencourt

SB 40 exempts certain agriculture, youth, and education nonprofits' property from Texas county taxes, reducing local government revenue in populous counties.

Filed
#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 · SB 40

Legislative bill overview

SB 40 would exempt property owned by certain nonprofit corporations from ad valorem (property) taxes in populous Texas counties, specifically for properties used to promote agriculture, support youth programs, and provide community educational services. The bill creates a targeted tax exemption for organizations meeting these specific charitable purposes within counties above a certain population threshold.

Why is this important

Property tax exemptions directly reduce local government revenue, which funds schools, infrastructure, and public services. This bill would shift the tax burden from these nonprofits to other property owners and potentially affect the fiscal capacity of counties to fund essential services. The exemption's scope and which nonprofits qualify will determine the actual revenue impact.

Potential points of contention

  • Revenue impact: Local governments and school districts may lose significant property tax revenue depending on how many nonprofits qualify and the value of their holdings
  • Selective applicability: Limiting the exemption to "populous counties" creates geographic inequity—nonprofits in less populated areas wouldn't receive the same benefit, raising fairness questions
  • Definition ambiguity: Terms like "promote agriculture," "support youth," and "educational support" need precise definitions to prevent exemptions from being claimed too broadly or for marginally-related activities
  • Accountability: Exemptions require mechanisms to verify nonprofits maintain their charitable purposes over time

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

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