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Bill

SB 773

Relating to the exemption from ad valorem taxation of real property owned by certain charitable organizations.

89th Legislature (2025) Introduced by Sarah Eckhardt

SB 773 expands or clarifies property tax exemptions for charitable organizations in Texas, potentially reducing local government revenue from nonprofits' real property holdings.

Referred to Local Government
#charitable&nonprofitorganizations(i0055) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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WeVote Research Nonpartisan
Bill Summary · SB 773

Legislative bill overview

SB 773 would modify Texas property tax exemptions for charitable organizations by expanding or clarifying which nonprofit entities qualify for ad valorem (property value-based) tax exemptions on real property they own. The bill specifically targets charitable organizations, potentially broadening the current criteria or streamlining the exemption process for qualifying nonprofits.

Why is this important

Property tax exemptions for charities directly affect municipal and county tax bases, shifting revenue burdens to other taxpayers and property owners. This bill could either increase tax revenue losses for local governments if exemptions expand, or improve administrative clarity if it merely clarifies existing rules. The outcome depends on whether SB 773 broadens exemption eligibility or simply refines definitions.

Potential points of contention

  • Revenue impact on local governments: Cities and counties may lose property tax revenue if exemption eligibility expands, potentially forcing service cuts or tax increases elsewhere
  • Definition of "charitable": Disagreement over which organizations qualify (religious institutions, political nonprofits, educational entities, social service providers) could create legal disputes
  • Competitive fairness: For-profit businesses may object to nonprofits gaining tax advantages, particularly in competitive industries like healthcare or housing

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

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