CHAPTER 11. TAXABLE PROPERTY AND EXEMPTIONS

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TAX CODE

TITLE 1. PROPERTY TAX CODE

SUBTITLE C. TAXABLE PROPERTY AND EXEMPTIONS

CHAPTER 11. TAXABLE PROPERTY AND EXEMPTIONS

SUBCHAPTER A. TAXABLE PROPERTY

Sec. 11.01. REAL AND TANGIBLE PERSONAL PROPERTY. (a) All real

and tangible personal property that this state has jurisdiction

to tax is taxable unless exempt by law.

(b) This state has jurisdiction to tax real property if located

in this state.

property if the property is:

(1) located in this state for longer than a temporary period;

(2) temporarily located outside this state and the owner resides

in this state; or

(3) used continually, whether regularly or irregularly, in this

state.

(d) Tangible personal property that is operated or located

exclusively outside this state during the year preceding the tax

year and on January 1 of the tax year is not taxable in this

state.

Acts 1979, 66th Leg., p. 2233, ch. 841, Sec. 1, eff. Jan. 1,

1980. Amended by Acts 1983, 68th Leg., p. 1908, ch. 353, Sec. 1,

eff. Jan. 1, 1984; Acts 1989, 71st Leg., ch. 534, Sec. 2, eff.

Jan. 1, 1990.

Sec. 11.02. INTANGIBLE PERSONAL PROPERTY. (a) Except as

provided by Subsection (b) of this section, intangible personal

property is not taxable.

(b) Intangible property governed by Article 4.01, Insurance

Code, or by Section 89.003, Finance Code, is taxable as provided

by law, unless exempt by law, if this state has jurisdiction to

tax those intangibles.

property if the property is:

(1) owned by a resident of this state; or

(2) located in this state for business purposes.

Acts 1979, 66th Leg., p. 2233, ch. 841, Sec. 1, eff. Jan. 1,

1980. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 3,

part A, Sec. 1, eff. Jan. 1, 1985; Acts 1999, 76th Leg., ch. 62,

Sec. 7.88, eff. Sept. 1, 1999.

SUBCHAPTER B. EXEMPTIONS

Sec. 11.11. PUBLIC PROPERTY. (a) Except as provided by

Subsections (b) and (c) of this section, property owned by this

state or a political subdivision of this state is exempt from

taxation if the property is used for public purposes.

(b) Land owned by the Permanent University Fund is taxable for

county purposes. Any notice required by Section 25.19 of this

code shall be sent to the comptroller, and the comptroller shall

appear in behalf of the state in any protest or appeal relating

to taxation of Permanent University Fund land.

benefit of public schools under Article VII, Section 6, of the

Texas Constitution is taxable for all purposes. The county shall

pay the taxes on the land from the revenue derived from the land.

If revenue from the land is insufficient to pay the taxes, the

county shall pay the balance from the county general fund.

(d) Property owned by the state that is not used for public

purposes is taxable. Property owned by a state agency or

institution is not used for public purposes if the property is

rented or leased for compensation to a private business

enterprise to be used by it for a purpose not related to the

performance of the duties and functions of the state agency or

institution or used to provide private residential housing for

compensation to members of the public other than students and

employees of the state agency or institution owning the property,

unless the residential use is secondary to its use by an

educational institution primarily for instructional purposes. Any

notice required by Section 25.19 of this code shall be sent to

the agency or institution that owns the property, and it shall

appear in behalf of the state in any protest or appeal related to

taxation of the property.

(e) Property that is held or dedicated for the support,

maintenance, or benefit of an institution of higher education as

defined by Section 61.003, Education Code, but is not rented or

leased for compensation to a private business enterprise to be

used by it for a purpose not related to the performance of the

duties and functions of the state or institution or is not rented

or leased to provide private residential housing to members of

the public other than students and employees of the state or

institution is not taxable. If a portion of property of an

institution of higher education is used for public purposes and a

portion is not used for those purposes, the portion of the

property used for public purposes is exempt under this

subsection. All oil, gas, and other mineral interests owned by an

institution of higher education are exempt from all ad valorem

taxes. Property bequeathed to an institution is exempt from the

assessment of ad valorem taxes from the date of the decedent's

death, unless:

(1) the property is leased for compensation to a private

business enterprise as provided in this subsection; or

(2) the transfer of the property to an institution is contested

in a probate court, in which case ad valorem taxes shall be

assessed to the estate of the decedent until the final

determination of the disposition of the property is made. The

property is exempt from the assessment of ad valorem taxes upon

vesting of the property in the institution.

(f) Property of a higher education development foundation or an

alumni association that is located on land owned by the state for

the support, maintenance, or benefit of an institution of higher

education as defined in Chapter 61, Education Code, is exempt

from taxation if:

(1) the foundation or organization meets the requirements of

Sections 11.18(e) and (f) and is organized exclusively to operate

programs or perform other activities for the benefit of

institutions of higher education; and

(2) the property is used exclusively in those programs or

activities.

(g) For purposes of this section, an improvement is owned by the

state and is used for public purposes if it is:

(1) located on land owned by the Texas Department of Criminal

Justice;

(2) leased and used by the department; and

(3) subject to a lease-purchase agreement providing that legal

title to the improvement passes to the department at the end of

the lease period.

(h) For purposes of this section, tangible personal property is

owned by this state or a political subdivision of this state if

it is subject to a lease-purchase agreement providing that the

state or political subdivision, as applicable, is entitled to

compel delivery of the legal title to the property to the state

or political subdivision, as applicable, at the end of the lease

term. The property ceases to be owned by the state or political

subdivision, as applicable, if, not later than the 30th day after

the date the lease terminates, the state or political

subdivision, as applicable, does not exercise its right to

acquire legal title to the property.

(i) A corporation organized under the Texas Non-Profit

Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil

Statutes), or a successor statute, that engages primarily in

providing chilled water and steam to an eligible institution, as

defined by Section 301.031, Health and Safety Code, is entitled

to an exemption from taxation of the property the corporation

owns as though the property of the corporation were owned by this

state and used for health or educational purposes.

(j) For purposes of this section, any portion of a facility

owned by the Texas Department of Transportation that is part of

the Trans-Texas Corridor, is a rail facility or system, or is a

highway in the state highway system, and that is licensed or

leased to a private entity by that department under Chapter 91,

223, or 227, Transportation Code, is public property used for a

public purpose if the rail facility or system, highway, or

facility is operated by the private entity to provide

transportation or utility services. Any part of a facility, rail

facility or system, or state highway that is licensed or leased

to a private entity for a commercial purpose is not exempt from

taxation.

Acts 1979, 66th Leg., p. 2234, ch. 841, Sec. 1, eff. Jan. 1,

1980. Amended by Acts 1981, 67th Leg., 1st C.S., p. 127, ch. 13,

Sec. 30, eff. Jan. 1, 1984; Acts 1983, 68th Leg., p. 4821, ch.

851, Sec. 5, eff. Aug. 29, 1983; Acts 1983, 68th Leg., p. 5419,

ch. 1007, Sec. 1, eff. Jan. 1, 1984; Acts 1989, 71st Leg., ch.

796, Sec. 14, eff. Jan. 1, 1990; Acts 1989, 71st Leg., ch. 1021,

Sec. 1, eff. Aug. 28, 1989; Acts 1990, 71st Leg., 6th C.S., ch.

12, Sec. 2(31), eff. Sept. 6, 1990; Acts 1991, 72nd Leg., 2nd

C.S., ch. 6, Sec. 9, eff. Sept. 1, 1991; Acts 1997, 75th Leg.,

ch. 843, Sec. 1, eff. Jan. 1, 1998; Acts 2001, 77th Leg., ch.

362, Sec. 1, eff. May 26, 2001; Acts 2003, 78th Leg., ch. 1266,

Sec. 1.01, eff. June 20, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

281, Sec. 2.95, eff. June 14, 2005.

Acts 2007, 80th Leg., R.S., Ch.

204, Sec. 1, eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.152, eff. September 1, 2009.

Sec. 11.111. PUBLIC PROPERTY USED TO PROVIDE TRANSITIONAL

HOUSING FOR INDIGENT PERSONS. (a) The governing body of a

taxing unit by ordinance or order may exempt from ad valorem

taxation residential property owned by the United States or an

agency of the United States and used to provide transitional

housing for the indigent under a program operated or directed by

the United States Department of Housing and Urban Development.

(b) For purposes of this section, transitional housing for

indigent individuals is housing provided at no cost or nominal

cost to an indigent individual or family during a temporary

period in which the individual or a member of the family

participates in a job training program, job placement program, or

other program intended to assist the individual or family to

become self-sufficient.

United States or its agency leases the property to a nonprofit

organization in return for the organization's assistance in

operating the program to provide transitional housing, as long as

the lease does not require the nonprofit organization to pay more

than a nominal amount to lease the property.

Added by Acts 1991, 72nd Leg., ch. 762, Sec. 13, eff. Jan. 1,

1992.

Sec. 11.12. FEDERAL EXEMPTIONS. Property exempt from ad valorem

taxation by federal law is exempt from taxation.

Acts 1979, 66th Leg., p. 2234, ch. 841, Sec. 1, eff. Jan. 1,

1980.

Sec. 11.13. RESIDENCE HOMESTEAD. (a) A family or single adult

is entitled to an exemption from taxation for the county purposes

authorized in Article VIII, Section 1-a, of the Texas

Constitution of $3,000 of the assessed value of his residence

homestead.

(b) An adult is entitled to exemption from taxation by a school

district of $15,000 of the appraised value of the adult's

residence homestead, except that $10,000 of the exemption does

not apply to an entity operating under former Chapter 17, 18, 25,

26, 27, or 28, Education Code, as those chapters existed on May

1, 1995, as permitted by Section 11.301, Education Code.

this section, an adult who is disabled or is 65 or older is

entitled to an exemption from taxation by a school district of

$10,000 of the appraised value of his residence homestead.

(d) In addition to the exemptions provided by Subsections (b)

and (c) of this section, an individual who is disabled or is 65

or older is entitled to an exemption from taxation by a taxing

unit of a portion (the amount of which is fixed as provided by

Subsection (e) of this section) of the appraised value of his

residence homestead if the exemption is adopted either:

(1) by the governing body of the taxing unit; or

(2) by a favorable vote of a majority of the qualified voters of

the taxing unit at an election called by the governing body of a

taxing unit, and the governing body shall call the election on

the petition of at least 20 percent of the number of qualified

voters who voted in the preceding election of the taxing unit.

(e) The amount of an exemption adopted as provided by Subsection

(d) of this section is $3,000 of the appraised value of the

residence homestead unless a larger amount is specified by:

(1) the governing body authorizing the exemption if the

exemption is authorized as provided by Subdivision (1) of

Subsection (d) of this section; or

(2) the petition for the election if the exemption is authorized

as provided by Subdivision (2) of Subsection (d) of this section.

(f) Once authorized, an exemption adopted as provided by

Subsection (d) of this section may be repealed or decreased or

increased in amount by the governing body of the taxing unit or

by the procedure authorized by Subdivision (2) of Subsection (d)

of this section. In the case of a decrease, the amount of the

exemption may not be reduced to less than $3,000 of the market

value.

(g) If the residence homestead exemption provided by Subsection

(d) of this section is adopted by a county that levies a tax for

the county purposes authorized by Article VIII, Section 1-a, of

the Texas Constitution, the residence homestead exemptions

provided by Subsections (a) and (d) of this section may not be

aggregated for the county tax purposes. An individual who is

eligible for both exemptions is entitled to take only the

exemption authorized as provided by Subsection (d) of this

section for purposes of that county tax.

(h) Joint, community, or successive owners may not each receive

the same exemption provided by or pursuant to this section for

the same residence homestead in the same year. An eligible

disabled person who is 65 or older may not receive both a

disabled and an elderly residence homestead exemption but may

choose either. A person may not receive an exemption under this

section for more than one residence homestead in the same year.

(i) The assessor and collector for a taxing unit may disregard

the exemptions authorized by Subsection (b), (c), (d), or (n) of

this section and assess and collect a tax pledged for payment of

debt without deducting the amount of the exemption if:

(1) prior to adoption of the exemption, the unit pledged the

taxes for the payment of a debt; and

(2) granting the exemption would impair the obligation of the

contract creating the debt.

(j) For purposes of this section:

(1) "Residence homestead" means a structure (including a mobile

home) or a separately secured and occupied portion of a structure

(together with the land, not to exceed 20 acres, and improvements

used in the residential occupancy of the structure, if the

structure and the land and improvements have identical ownership)

that:

(A) is owned by one or more individuals, either directly or

through a beneficial interest in a qualifying trust;

(B) is designed or adapted for human residence;

(D) is occupied as his principal residence by an owner or, for

property owned through a beneficial interest in a qualifying

trust, by a trustor of the trust who qualifies for the exemption.

(2) "Trustor" means a person who transfers an interest in

residential property to a qualifying trust, whether by deed or by

will, or the person's spouse.

(3) "Qualifying trust" means a trust:

(A) in which the agreement, will, or court order creating the

trust provides that the trustor of the trust or the beneficiary

of the trust if created by court order has the right to use and

occupy as the trustor's or beneficiary's principal residence

residential property rent free and without charge except for

taxes and other costs and expenses specified in the instrument or

court order:

(i) for life;

(ii) for the lesser of life or a term of years; or

(iii) until the date the trust is revoked or terminated by an

instrument or court order that describes the property with

sufficient certainty to identify it and is recorded in the real

property records of the county in which the property is located;

and

(B) that acquires the property in an instrument of title or

under a court order that:

(i) describes the property with sufficient certainty to identify

it and the interest acquired;

(ii) is recorded in the real property records of the county in

which the property is located; and

(iii) in the case of a trust that is not created by court order,

is executed by the trustor or the personal representative of the

trustor.

(k) A qualified residential structure does not lose its

character as a residence homestead if a portion of the structure

is rented to another or is used primarily for other purposes that

are incompatible with the owner's residential use of the

structure. However, the amount of any residence homestead

exemption does not apply to the value of that portion of the

structure that is used primarily for purposes that are

incompatible with the owner's residential use.

(l) A qualified residential structure does not lose its

character as a residence homestead when the owner who qualifies

for the exemption temporarily stops occupying it as a principal

residence if that owner does not establish a different principal

residence and the absence is:

(1) for a period of less than two years and the owner intends to

return and occupy the structure as the owner's principal

residence; or

(2) caused by the owner's:

(A) military service outside of the United States as a member of

the armed forces of the United States or of this state; or

(B) residency in a facility that provides services related to

health, infirmity, or aging.

(m) In this section:

(1) "Disabled" means under a disability for purposes of payment

of disability insurance benefits under Federal Old-Age,

Survivors, and Disability Insurance.

(2) "School district" means a political subdivision organized to

provide general elementary and secondary public education.

"School district" does not include a junior college district or a

political subdivision organized to provide special education

services.

(n) In addition to any other exemptions provided by this

section, an individual is entitled to an exemption from taxation

by a taxing unit of a percentage of the appraised value of his

residence homestead if the exemption is adopted by the governing

body of the taxing unit before July 1 in the manner provided by

law for official action by the body. If the percentage set by the

taxing unit produces an exemption in a tax year of less than

$5,000 when applied to a particular residence homestead, the

individual is entitled to an exemption of $5,000 of the appraised

value. The percentage adopted by the taxing unit may not exceed

20 percent.

(o) For purposes of this section, a residence homestead also may

consist of an interest in real property created through ownership

of stock in a corporation incorporated under the Cooperative

Association Act (Article 1396-50.01, Vernon's Texas Civil

Statutes) to provide dwelling places to its stockholders if:

(1) the interests of the stockholders of the corporation are

appraised separately as provided by Section 23.19 of this code in

the tax year to which the exemption applies;

(2) ownership of the stock entitles the owner to occupy a

dwelling place owned by the corporation;

(3) the dwelling place is a structure or a separately secured

and occupied portion of a structure; and

(4) the dwelling place is occupied as his principal residence by

a stockholder who qualifies for the exemption.

(p) Exemption under this section for a homestead described by

Subsection (o) of this section extends only to the dwelling place

occupied as a residence homestead and to a portion of the total

common area used in the residential occupancy that is equal to

the percentage of the total amount of the stock issued by the

corporation that is owned by the homestead claimant. The size of

a residence homestead under Subsection (o) of this section,

including any relevant portion of common area, may not exceed 20

acres.

(q) The surviving spouse of an individual who qualifies for an

exemption under Subsection (d) for the residence homestead of a

person 65 or older is entitled to an exemption for the same

property from the same taxing unit in an amount equal to that of

the exemption for which the deceased spouse qualified if:

(1) the deceased spouse died in a year in which the deceased

spouse qualified for the exemption;

(2) the surviving spouse was 55 or older when the deceased

spouse died; and

(3) the property was the residence homestead of the surviving

spouse when the deceased spouse died and remains the residence

homestead of the surviving spouse.

(r) An individual who receives an exemption under Subsection (d)

is not entitled to an exemption under Subsection (q).

(s) Expired.

Acts 1979, 66th Leg., p. 2234, ch. 841, Sec. 1, eff. Jan. 1,

1980. Amended by Acts 1981, 67th Leg., 1st C.S., p. 127, ch. 13,

Sec. 31, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 4822, ch.

851, Sec. 6, eff. Aug. 29, 1983; Acts 1985, 69th Leg., ch. 301,

Sec. 1, eff. June 7, 1985; Acts 1987, 70th Leg., ch. 547, Sec. 1,

eff. Jan. 1, 1988; Acts 1991, 72nd Leg., ch. 20, Sec. 18, eff.

Aug. 26, 1991; Acts 1991, 72nd Leg., ch. 20, Sec. 19(a), eff.

Jan. 1, 1992; Acts 1991, 72nd Leg., ch. 391, Sec. 14; Acts 1993,

73rd Leg., ch. 347, Sec. 4.08, eff. May 31, 1993; Acts 1993, 73rd

Leg., ch. 854, Sec. 1, eff. Jan. 1, 1994; Acts 1995, 74th Leg.,

ch. 76, Sec. 15.01, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch.

610, Sec. 1, eff. Jan. 1, 1996; Acts 1997, 75th Leg., ch. 194,

Sec. 1, eff. Jan. 1, 1998; Acts 1997, 75th Leg., ch. 592, Sec.

2.01; Acts 1997, 75th Leg., ch. 1039, Sec. 6, eff. Jan. 1, 1998;

Acts 1997, 75th Leg., ch. 1059, Sec. 2, eff. June 19, 1997; Acts

1997, 75th Leg., ch. 1071, Sec. 28, eff. Sept. 1, 1997; Acts

1999, 76th Leg., ch. 1199, Sec. 1, eff. June 18, 1999; Acts 1999,

76th Leg., ch. 1481, Sec. 1, eff. Jan. 1, 2000; Acts 2003, 78th

Leg., ch. 240, Sec. 1, eff. June 18, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

159, Sec. 1, eff. January 1, 2006.

Sec. 11.131. RESIDENCE HOMESTEAD OF 100 PERCENT OR TOTALLY

DISABLED VETERAN. (a) In this section:

(1) "Disabled veteran" has the meaning assigned by Section

11.22.

(2) "Residence homestead" has the meaning assigned by Section

11.13.

(b) A disabled veteran who receives from the United States

Department of Veterans Affairs or its successor 100 percent

disability compensation due to a service-connected disability and

a rating of 100 percent disabled or of individual unemployability

is entitled to an exemption from taxation of the total appraised

value of the veteran's residence homestead.

Added by Acts 2009, 81st Leg., R.S., Ch.

1405, Sec. 1(a), eff. June 19, 2009.

Sec. 11.135. CONTINUATION OF RESIDENCE HOMESTEAD EXEMPTION WHILE

REPLACEMENT STRUCTURE IS CONSTRUCTED; SALE OF PROPERTY. (a) If

a qualified residential structure for which the owner receives an

exemption under Section 11.13 is rendered uninhabitable or

unusable by a casualty or by wind or water damage, the owner may

continue to receive the exemption for the structure and the land

and improvements used in the residential occupancy of the

structure while the owner constructs a replacement qualified

residential structure on the land if the owner does not establish

a different principal residence for which the owner receives an

exemption under Section 11.13 during that period and intends to

return and occupy the structure as the owner's principal

residence. To continue to receive the exemption, the owner must

begin active construction of the replacement qualified

residential structure or other physical preparation of the site

on which the structure is to be located not later than the first

anniversary of the date the owner ceases to occupy the former

qualified residential structure as the owner's principal

residence. The owner may not receive the exemption for that

property under the circumstances described by this subsection for

more than two years.

(b) For purposes of Subsection (a), the site of a replacement

qualified residential structure is under physical preparation if

the owner has engaged in architectural or engineering work, soil

testing, land clearing activities, or site improvement work

necessary for the construction of the structure or has conducted

an environmental or land use study relating to the construction

of the structure.

11.13 under the circumstances described by Subsection (a) and

sells the property before the owner completes construction of a

replacement qualified residential structure on the property, an

additional tax is imposed on the property equal to the difference

between the taxes imposed on the property for each of the years

in which the owner received the exemption and the tax that would

have been imposed had the owner not received the exemption in

each of those years, plus interest at an annual rate of seven

percent calculated from the dates on which the differences would

have become due.

(d) A tax lien attaches to property on the date a sale under the

circumstances described by Subsection (c) occurs to secure

payment of the additional tax and interest imposed by that

subsection and any penalties incurred. The lien exists in favor

of all taxing units for which the additional tax is imposed.

(e) A determination that a sale of property under the

circumstances described by Subsection (c) has occurred is made by

the chief appraiser. The chief appraiser shall deliver a notice

of the determination to the owner of the property as soon as

possible after making the determination and shall include in the

notice an explanation of the owner's right to protest the

determination. If the owner does not file a timely protest or if

the final determination of the protest is that the additional

taxes are due, the assessor for each taxing unit shall prepare

and deliver a bill for the additional taxes plus interest as soon

as practicable. The taxes and interest are due and become

delinquent and incur penalties and interest as provided by law

for ad valorem taxes imposed by the taxing unit if not paid

before the next February 1 that is at least 20 days after the

date the bill is delivered to the owner of the property.

(f) The sanctions provided by Subsection (c) do not apply if the

sale is:

(1) for right-of-way; or

(2) to this state or a political subdivision of this state to be

used for a public purpose.

(g) The comptroller shall adopt rules and forms to implement

this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1417, Sec. 2, eff. January 1, 2010.

Sec. 11.14. TANGIBLE PERSONAL PROPERTY NOT PRODUCING INCOME.

(a) A person is entitled to an exemption from taxation of all

tangible personal property, other than manufactured homes, that

the person owns and that is not held or used for production of

income. This subsection does not exempt from taxation a structure

that a person owns which is substantially affixed to real estate

and is used or occupied as a residential dwelling.

(b) In this section:

(1) "Manufactured home" has the meaning assigned by Section

11.432.

(2) "Structure" does not include a vehicle that:

(A) is a trailer-type unit designed primarily for use as

temporary living quarters in connection with recreational,

camping, travel, or seasonal use;

(B) is built on a single chassis mounted on wheels;

feet or less; and

(D) is certified by the manufacturer as complying with American

National Standards Institute Standard A119.5.

depending upon the method prescribed by law for official action

by that governing body, may provide for taxation of tangible

personal property exempted under Subsection (a). If a taxing unit

provides for taxation of tangible personal property as provided

by this subsection, the exemption prescribed by Subsection (a)

does not apply to that unit.

(d) The central appraisal district for the county shall

determine the cost of appraising tangible personal property

required by a taxing unit under the provisions of Subsection (c)

and shall assess those costs to the taxing unit or taxing units

which provide for the taxation of tangible personal property.

(e) A political subdivision choosing to tax property otherwise

made exempt by this section, pursuant to Article VIII, Section

1(e), of the Texas Constitution, may not do so until the

governing body of the political subdivision has held a public

hearing on the matter, after having given notice of the hearing

at the times and in the manner required by this subsection, and

has found that the action will be in the public interest of all

the residents of that political subdivision. At the hearing, all

interested persons are entitled to speak and present evidence for

or against taxing the property. Not later than the 30th day prior

to the date of a hearing held under this subsection, notice of

the hearing must be:

(1) published in a newspaper having general circulation in the

political subdivision and in a section of the newspaper other

than the advertisement section;

(2) not less than one-half of one page in size; and

(3) republished on not less than three separate days during the

period beginning with the 10th day prior to the hearing and

ending with the actual date of the hearing.

Acts 1979, 66th Leg., p. 2236, ch. 841, Sec. 1, eff. Jan. 1,

1980. Amended by Acts 1987, 70th Leg., ch. 181, Sec. 1, eff. May

26, 1987; Acts 1989, 71st Leg., ch. 76, Sec. 1, eff. Jan. 1,

1990; Acts 1991, 72nd Leg., ch. 391, Sec. 15, eff. Aug. 26, 1991;

Acts 1993, 73rd Leg., ch. 347, Sec. 4.09, eff. May 31, 1993; Acts

2001, 77th Leg., ch. 521, Sec. 1, eff. Jan. 1, 2002; Acts 2003,

78th Leg., ch. 5, Sec. 1, eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1216, Sec. 1, eff. January 1, 2009.

Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY HAVING

VALUE OF LESS THAN $500. (a) A person is entitled to an

exemption from taxation of the tangible personal property the

person owns that is held or used for the production of income if

that property has a taxable value of less than $500.

(b) The exemption provided by Subsection (a) applies to each

separate taxing unit in which a person holds or uses tangible

personal property for the production of income, and, for the

purposes of Subsection (a), all property in each taxing unit is

aggregated to determine taxable value.

Added by Acts 1995, 74th Leg., ch. 296, Sec. 1, eff. Jan. 1,

1996.

Sec. 11.146. MINERAL INTEREST HAVING VALUE OF LESS THAN $500.

(a) A person is entitled to an exemption from taxation of a

mineral interest the person owns if the interest has a taxable

value of less than $500.

(b) The exemption provided by Subsection (a) applies to each

separate taxing unit in which a person owns a mineral interest

and, for the purposes of Subsection (a), all mineral interests in

each taxing unit are aggregated to determine value.

Added by Acts 1995, 74th Leg., ch. 296, Sec. 1, eff. Jan. 1,

1996.

Sec. 11.15. FAMILY SUPPLIES. A family is entitled to an

exemption from taxation of its family supplies for home or farm

use.

Acts 1979, 66th Leg., p. 2236, ch. 841, Sec. 1, eff. Jan. 1,

1980.

Sec. 11.16. FARM PRODUCTS. (a) A producer is entitled to an

exemption from taxation of the farm products that he produces and

owns. A nursery product, as defined by Section 71.041,

Agriculture Code, is a farm product for purposes of this section

if it is in a growing state.

(b) Farm products in the hands of the producer are exempt.

apply:

(1) "Farm products" include livestock, poultry, and timber.

(2) "In the hands of the producer," for livestock and poultry,

means under the ownership of the person who is financially

providing for the physical requirements of such livestock and

poultry on January 1 of the tax year and, for timber, means

standing timber or timber that has been harvested and, on January

1 of the tax year, is located on the real property on which it

was produced and is under the ownership of the person who owned

the timber when it was standing.

Acts 1979, 66th Leg., p. 2236, ch. 841, Sec. 1, eff. Jan. 1,

1980. Amended by Acts 1981, 67th Leg., p. 457, ch. 192, Sec. 1,

eff. Jan. 1, 1982; Acts 1981, 67th Leg. p. 1487, ch. 388, Sec. 3,

eff. Sept. 1, 1981; Acts 1999, 76th Leg., ch. 631, Sec. 2, eff.

Jan. 1, 2000.

Sec. 11.161. IMPLEMENTS OF HUSBANDRY. Machinery and equipment

items that are used in the production of farm or ranch products

or of timber, regardless of their primary design, are considered

to be implements of husbandry and are exempt from ad valorem

taxation.

Added by Acts 1981, 67th Leg., 1st C.S., p. 127, ch. 13, Sec. 32,

eff. Jan. 1, 1982. Amended by Acts 1983, 68th Leg., p. 4823, ch.

851, Sec. 7, eff. Aug. 29, 1983; Acts 1991, 72nd Leg., ch. 16,

Sec. 17.01, eff. Aug. 26, 1991; Acts 1999, 76th Leg., ch. 631,

Sec. 3, eff. Jan. 1, 2000.

Amended by:

Acts 2005, 79th Leg., Ch.

412, Sec. 6, eff. January 1, 2006.

Sec. 11.17. CEMETERIES. A person is entitled to an exemption

from taxation of the property he owns and uses exclusively for

human burial and does not hold for profit.

Acts 1979, 66th Leg., p. 2236, ch. 841, Sec. 1, eff. Jan. 1,

1980.

Sec. 11.18. CHARITABLE ORGANIZATIONS. (a) An organization that

qualifies as a charitable organization as provided by this

section is entitled to an exemption from taxation of:

(1) the buildings and tangible personal property that:

(A) are owned by the charitable organization; and

(B) except as permitted by Subsection (b), are used exclusively

by qualified charitable organizations; and

(2) the real property owned by the charitable organization

consisting of:

(A) an incomplete improvement that:

(i) is under active construction or other physical preparation;

and

(ii) is designed and intended to be used exclusively by

qualified charitable organizations; and

(B) the land on which the incomplete improvement is located that

will be reasonably necessary for the use of the improvement by

qualified charitable organizations.

(b) Use of exempt property by persons who are not charitable

organizations qualified as provided by this section does not

result in the loss of an exemption authorized by this section if

the use is incidental to use by qualified charitable

organizations and limited to activities that benefit the

beneficiaries of the charitable organizations that own or use the

property.

this section, an organization, whether operated by an individual,

or as a corporation, foundation, trust, or association, must meet

the applicable requirements of Subsections (d), (e), (f), and

(g).

Text of subsection as reenacted by Acts 2009, 81st Leg., R.S.,

Ch.

1246, Sec. 1

(d) A charitable organization must be organized exclusively to

perform religious, charitable, scientific, literary, or

educational purposes and, except as permitted by Subsections (h)

and (l), engage exclusively in performing one or more of the

following charitable functions:

(1) providing medical care without regard to the beneficiaries'

ability to pay, which in the case of a nonprofit hospital or

hospital system means providing charity care and community

benefits in accordance with Section 11.1801;

(2) providing support or relief to orphans, delinquent,

dependent, or handicapped children in need of residential care,

abused or battered spouses or children in need of temporary

shelter, the impoverished, or victims of natural disaster without

regard to the beneficiaries' ability to pay;

(3) providing support without regard to the beneficiaries'

ability to pay to:

(A) elderly persons, including the provision of:

(i) recreational or social activities; and

(ii) facilities designed to address the special needs of elderly

persons; or

(B) the handicapped, including training and employment:

(i) in the production of commodities; or

(ii) in the provision of services under 41 U.S.C. Sections

46-48c;

(4) preserving a historical landmark or site;

(5) promoting or operating a museum, zoo, library, theater of

the dramatic or performing arts, or symphony orchestra or choir;

(6) promoting or providing humane treatment of animals;

(7) acquiring, storing, transporting, selling, or distributing

water for public use;

(8) answering fire alarms and extinguishing fires with no

compensation or only nominal compensation to the members of the

organization;

(9) promoting the athletic development of boys or girls under

the age of 18 years;

(10) preserving or conserving wildlife;

(11) promoting educational development through loans or

scholarships to students;

(12) providing halfway house services pursuant to a

certification as a halfway house by the parole division of the

Texas Department of Criminal Justice;

(13) providing permanent housing and related social, health

care, and educational facilities for persons who are 62 years of

age or older without regard to the residents' ability to pay;

(14) promoting or operating an art gallery, museum, or

collection, in a permanent location or on tour, that is open to

the public;

(15) providing for the organized solicitation and collection for

distributions through gifts, grants, and agreements to nonprofit

charitable, education, religious, and youth organizations that

provide direct human, health, and welfare services;

(16) performing biomedical or scientific research or biomedical

or scientific education for the benefit of the public;

(17) operating a television station that produces or broadcasts

educational, cultural, or other public interest programming and

that receives grants from the Corporation for Public Broadcasting

under 47 U.S.C. Section 396, as amended;

(18) providing housing for low-income and moderate-income

families, for unmarried individuals 62 years of age or older, for

handicapped individuals, and for families displaced by urban

renewal, through the use of trust assets that are irrevocably

and, pursuant to a contract entered into before December 31,

1972, contractually dedicated on the sale or disposition of the

housing to a charitable organization that performs charitable

functions described by Subdivision (9);

(19) providing housing and related services to persons who are

62 years of age or older in a retirement community, if the

retirement community provides independent living services,

assisted living services, and nursing services to its residents

on a single campus:

(A) without regard to the residents' ability to pay; or

(B) in which at least four percent of the retirement community's

combined net resident revenue is provided in charitable care to

its residents;

(20) providing housing on a cooperative basis to students of an

institution of higher education if:

(A) the organization is exempt from federal income taxation

under Section 501(a), Internal Revenue Code of 1986, as amended,

by being listed as an exempt entity under Section 501(c)(3) of

that code;

(B) membership in the organization is open to all students

enrolled in the institution and is not limited to those chosen by

current members of the organization;

(D) the members of the organization share the responsibility for

managing the housing;

(21) acquiring, holding, and transferring unimproved real

property under an urban land bank demonstration program

established under Chapter 379C, Local Government Code, as or on

behalf of a land bank;

(22) acquiring, holding, and transferring unimproved real

property under an urban land bank program established under

Chapter 379E, Local Government Code, as or on behalf of a land

bank; or

(23) operating a radio station that broadcasts educational,

cultural, or other public interest programming, including

classical music, and that in the preceding five years has

received or been selected to receive one or more grants from the

Corporation for Public Broadcasting under 47 U.S.C. Section 396,

as amended.

Text of subsection as reenacted by Acts 2009, 81st Leg., R.S.,

Ch.

1314, Sec. 1

(d) A charitable organization must be organized exclusively to

perform religious, charitable, scientific, literary, or

educational purposes and, except as permitted by Subsections (h)

and (l), engage exclusively in performing one or more of the

following charitable functions:

(1) providing medical care without regard to the beneficiaries'

ability to pay, which in the case of a nonprofit hospital or

hospital system means providing charity care and community

benefits in accordance with Section 11.1801;

(2) providing support or relief to orphans, delinquent,

dependent, or handicapped children in need of residential care,

abused or battered spouses or children in need of temporary

shelter, the impoverished, or victims of natural disaster without

regard to the beneficiaries' ability to pay;

(3) providing support to elderly persons, including the

provision of recreational or social activities and facilities

designed to address the special needs of elderly persons, or to

the handicapped, without regard to the beneficiaries' ability to

pay;

(4) preserving a historical landmark or site;

(5) promoting or operating a museum, zoo, library, theater of

the dramatic or performing arts, or symphony orchestra or choir;

(6) promoting or providing humane treatment of animals;

(7) acquiring, storing, transporting, selling, or distributing

water for public use;

(8) answering fire alarms and extinguishing fires with no

compensation or only nominal compensation to the members of the

organization;

(9) promoting the athletic development of boys or girls under

the age of 18 years;

(10) preserving or conserving wildlife;

(11) promoting educational development through loans or

scholarships to students;

(12) providing halfway house services pursuant to a

certification as a halfway house by the parole division of the

Texas Department of Criminal Justice;

(13) providing permanent housing and related social, health

care, and educational facilities for persons who are 62 years of

age or older without regard to the residents' ability to pay;

(14) promoting or operating an art gallery, museum, or

collection, in a permanent location or on tour, that is open to

the public;

(15) providing for the organized solicitation and collection for

distributions through gifts, grants, and agreements to nonprofit

charitable, education, religious, and youth organizations that

provide direct human, health, and welfare services;

(16) performing biomedical or scientific research or biomedical

or scientific education for the benefit of the public;

(17) operating a television station that produces or broadcasts

educational, cultural, or other public interest programming and

that receives grants from the Corporation for Public Broadcasting

under 47 U.S.C. Section 396, as amended;

(18) providing housing for low-income and moderate-income

families, for unmarried individuals 62 years of age or older, for

handicapped individuals, and for families displaced by urban

renewal, through the use of trust assets that are irrevocably

and, pursuant to a contract entered into before December 31,

1972, contractually dedicated on the sale or disposition of the

housing to a charitable organization that performs charitable

functions described by Subdivision (9);

(19) providing housing and related services to persons who are

62 years of age or older in a retirement community, if the

retirement community provides independent living services,

assisted living services, and nursing services to its residents

on a single campus:

(A) without regard to the residents' ability to pay; or

(B) in which at least four percent of the retirement community's

combined net resident revenue is provided in charitable care to

its residents;

(20) providing housing on a cooperative basis to students of an

institution of higher education if:

(A) the organization is exempt from federal income taxation

under Section 501(a), Internal Revenue Code of 1986, as amended,

by being listed as an exempt entity under Section 501(c)(3) of

that code;

(B) membership in the organization is open to all students

enrolled in the institution and is not limited to those chosen by

current members of the organization;

(D) the members of the organization share the responsibility for

managing the housing;

(21) acquiring, holding, and transferring unimproved real

property under an urban land bank demonstration program

established under Chapter 379C, Local Government Code, as or on

behalf of a land bank;

(22) acquiring, holding, and transferring unimproved real

property under an urban land bank program established under

Chapter 379E, Local Government Code, as or on behalf of a land

bank; or

(23) providing housing and related services to individuals who:

(A) are unaccompanied and homeless and have a disabling

condition; and

(B) have been continuously homeless for a year or more or have

had at least four episodes of homelessness in the preceding three

years.

(e) A charitable organization must be operated in a way that

does not result in accrual of distributable profits, realization

of private gain resulting from payment of compensation in excess

of a reasonable allowance for salary or other compensation for

services rendered, or realization of any other form of private

gain and, if the organization performs one or more of the

charitable functions specified by Subsection (d) other than a

function specified by Subdivision (1), (2), (8), (9), (12), (16),

or (18), be organized as a nonprofit corporation as defined by

the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,

Vernon's Texas Civil Statutes).

(f) A charitable organization must:

(1) use its assets in performing the organization's charitable

functions or the charitable functions of another charitable

organization; and

(2) by charter, bylaw, or other regulation adopted by the

organization to govern its affairs direct that on discontinuance

of the organization by dissolution or otherwise:

(A) the assets are to be transferred to this state, the United

States, or an educational, religious, charitable, or other

similar organization that is qualified as a charitable

organization under Section 501(c)(3), Internal Revenue Code of

1986, as amended; or

(B) if required for the organization to qualify as a tax-exempt

organization under Section 501(c)(12), Internal Revenue Code of

1986, as amended, the assets are to be transferred directly to

the organization's members, each of whom, by application for an

acceptance of membership in the organization, has agreed to

immediately transfer those assets to this state or to an

educational, religious, charitable, or other similar organization

that is qualified as a charitable organization under Section

501(c)(3), Internal Revenue Code of 1986, as amended, as

designated in the bylaws, charter, or regulation adopted by the

organization.

(g) A charitable organization that performs a charitable

function specified by Subsection (d)(15) must:

(1) be affiliated with a state or national organization that

authorizes, approves, or sanctions volunteer charitable

fundraising organizations;

(2) qualify for exemption under Section 501(c)(3), Internal

Revenue Code of 1986, as amended;

(3) be governed by a volunteer board of directors; and

(4) distribute contributions to at least five other associations

to be used for general charitable purposes, with all recipients

meeting the following criteria:

(A) be governed by a volunteer board of directors;

(B) qualify for exemption under Section 501(c)(3), Internal

Revenue Code of 1986, as amended;

corporate charitable gifts and government agencies; and

(D) provide services without regard to the ability of persons

receiving the services to pay for the services.

(h) Performance of noncharitable functions by a charitable

organization that owns or uses exempt property does not result in

loss of an exemption authorized by this section if those other

functions are incidental to the organization's charitable

functions. The division of responsibilities between an

organization that qualifies as a charitable organization under

Subsection (c) and another organization will not disqualify the

organizations or any property owned or used by either

organization from receiving an exemption under this section if

the collaboration furthers the provision of one or more of the

charitable functions described in Subsection (d) and if the other

organization:

(1) is exempt from federal income taxation under Section 501(a),

Internal Revenue Code of 1986, as an organization described by

Section 501(c)(3) of that code;

(2) meets the criteria for a charitable organization under

Subsections (e) and (f); and

(3) is under common control with the charitable organization

described in this subsection.

(i) In this section, "building" includes the land that is

reasonably necessary for use of, access to, and ornamentation of

the building.

(j) The exemption of an organization preserving or conserving

wildlife is limited to land and improvements and may not exceed

1,000 acres in any one county.

(k) In connection with a nursing home or retirement community,

for purposes of Subsection (d):

(1) "Assisted living services" means responsible adult

supervision of or assistance with routine living functions of an

individual in instances where the individual's condition

necessitates that supervision or assistance.

(2) "Charity care," "government-sponsored indigent health care,"

and "net resident revenue" are determined in the same manner for

a retirement community or nursing home as for a hospital under

Section 11.1801(a)(2).

(3) "Nursing care services" includes services provided by

nursing personnel, including patient observation, the promotion

and maintenance of health, prevention of illness or disability,

guidance and counseling to individuals and families, and referral

of patients to physicians, other health care providers, or

community resources if appropriate.

(4) "Retirement community" means a collection of various types

of housing that are under common ownership and designed for

habitation by individuals over the age of 62.

(5) "Single campus" means a facility designed to provide

multiple levels of retirement housing that is geographically

situated on a site at which all levels of housing are contiguous

to each other on a single property.

(l) A charitable organization described by Subsection (d)(3)

that provides support to elderly persons must engage primarily in

performing charitable functions described by Subsection (d)(3),

but may engage in other activities that support or are related to

its charitable functions.

(m) A property may not be exempted under Subsection (a)(2) for

more than three years.

(n) For purposes of Subsection (a)(2), an incomplete improvement

is under physical preparation if the charitable organization has:

(1) engaged in architectural or engineering work, soil testing,

land clearing activities, or site improvement work necessary for

the construction of the improvement; or

(2) conducted an environmental or land use study relating to the

construction of the improvement.

(o) For purposes of Subsection (a)(2), real property acquired,

held, and transferred by an organization that performs the

function described by Subsection (d)(21) or (22) is considered to

be used exclusively by the qualified charitable organization to

perform that function.

Text of subsection as added by Acts 2009, 81st Leg., R.S., Ch.

1246, Sec. 2

(p) Real property owned by a charitable organization and leased

to an institution of higher education, as defined by Section

61.003, Education Code, is exempt from taxation to the same

extent as the property would be exempt if the property were owned

by the institution.

Text of subsection as added by Acts 2009, 81st Leg., R.S., Ch.

1314, Sec. 2

(p) The exemption authorized by Subsection (d)(23) applies only

to improvements that:

(1) are owned by a charitable organization that has been in

existence for at least 10 years;

(2) are used to provide housing and related services to

individuals described by that subsection; and

(3) are located on a single campus owned by a municipality with

a population of more than 600,000 and less than 700,000.

Acts 1979, 66th Leg., p. 2236, ch. 841, Sec. 1, eff. Jan. 1,

1980. Amended by Acts 1981, 67th Leg., 1st C.S., p. 127, ch. 13,

Sec. 33, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 2207, ch.

412, Sec. 1, eff. Jan. 1, 1984; Acts 1985, 69th Leg., ch. 960,

Sec. 1, eff. Jan. 1, 1986; Acts 1987, 70th Leg., ch. 430, Sec. 1,

eff. Jan. 1, 1988; Acts 1991, 72nd Leg., ch. 407, Sec. 1, eff.

Jan. 1, 1992; Acts 1993, 73rd Leg., ch. 360, Sec. 5, eff. Sept.

1, 1993; Acts 1995, 74th Leg., ch. 471, Sec. 1, eff. Jan. 1,

1996; Acts 1995, 74th Leg., ch. 781, Sec. 4, eff. Sept. 1, 1995;

Acts 1997, 75th Leg., ch. 715, Sec. 1, eff. Jan. 1, 1998; Acts

1997, 75th Leg., ch. 1039, Sec. 7, eff. Jan. 1, 1998; Acts 1997,

75th Leg., ch. 1411, Sec. 1, eff. June 20, 1997; Acts 1999, 76th

Leg., ch. 138, Sec. 1, eff. May 18, 1999; Acts 1999, 76th Leg.,

ch. 266, Sec. 1, eff. Jan. 1, 2000; Acts 1999, 76th Leg., ch.

924, Sec. 1, eff. Jan. 1, 2000; Acts 1999, 76th Leg., ch. 1443,

Sec. 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1420, Sec.

18.001(a), eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 288,

Sec. 1.01, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 288,

Sec. 2.01, eff. Jan. 1, 2006.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1034, Sec. 13, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1341, Sec. 34, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 22.002, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1246, Sec. 1, eff. January 1, 2010.

Acts 2009, 81st Leg., R.S., Ch.

1246, Sec. 2, eff. January 1, 2010.

Acts 2009, 81st Leg., R.S., Ch.

1314, Sec. 1, eff. January 1, 2010.

Acts 2009, 81st Leg., R.S., Ch.

1314, Sec. 2, eff. January 1, 2010.

Sec. 11.1801. CHARITY CARE AND COMMUNITY BENEFITS REQUIREMENTS

FOR CHARITABLE HOSPITAL. (a) To qualify as a charitable

organization under Section 11.18(d)(1), a nonprofit hospital or

hospital system must provide charity care and community benefits

as follows:

(1) charity care and government-sponsored indigent health care

must be provided at a level that is reasonable in relation to the

community needs, as determined through the community needs

assessment, the available resources of the hospital or hospital

system, and the tax-exempt benefits received by the hospital or

hospital system;

(2) charity care and government-sponsored indigent health care

must be provided in an amount equal to at least four percent of

the hospital's or hospital system's net patient revenue;

(3) charity care and government-sponsored indigent health care

must be provided in an amount equal to at least 100 percent of

the hospital's or hospital system's tax-exempt benefits,

excluding federal income tax; or

(4) charity care and community benefits must be provided in a

combined amount equal to at least five percent of the hospital's

or hospital system's net patient revenue, provided that charity

care and government-sponsored indigent health care are provided

in an amount equal to at least four percent of net patient

revenue.

(b) A nonprofit hospital that has been designated as a

disproportionate share hospital under the state Medicaid program

in the current year or in either of the previous two fiscal years

shall be considered to have provided a reasonable amount of

charity care and government-sponsored indigent health care and is

considered to be in compliance with the standards in Subsection

(a).

a county with a population of less than 58,000 and in which the

entire county or the population of the entire county has been

designated as a health professionals shortage area is considered

to be in compliance with the standards in Subsection (a).

(d) A hospital providing health care services to inpatients or

outpatients without receiving any payment for providing those

services from any source, including the patient or person legally

obligated to support the patient, third-party payors, Medicare,

Medicaid, or any other state or local indigent care program but

excluding charitable donations, legacies, bequests, or grants or

payments for research, is considered to be in compliance with the

standards in Subsection (a).

(e) For purposes of complying with Subsection (a)(4), a hospital

or hospital system may not change its existing fiscal year unless

the hospital or hospital system changes its ownership or

corporate structure as a result of a sale or merger.

(f) For purposes of this section, a hospital that complies with

Subsection (a)(1) or that is considered to be in compliance with

the standards in Subsection (a) under Subsection (b), (c), or (d)

shall be excluded in determining a hospital system's compliance

with the standards in Subsection (a)(2), (3), or (4).

(g) For purposes of this section, "charity care,"

"government-sponsored indigent health care," "health care

organization," "hospital system," "net patient revenue,"

"nonprofit hospital," and "tax-exempt benefits" have the meanings

assigned by Sections 311.031 and 311.042, Health and Safety Code.

A determination of the amount of community benefits and charity

care and government-sponsored indigent health care provided by a

hospital or hospital system and the hospital's or hospital

system's compliance with Section 311.045, Health and Safety Code,

shall be based on the most recently completed and audited prior

fiscal year of the hospital or hospital system.

(h) The providing of charity care and government-sponsored

indigent health care in accordance with Subsection (a)(1) shall

be guided by the prudent business judgment of the hospital, which

will ultimately determine the appropriate level of charity care

and government-sponsored indigent health care based on the

community needs, the available resources of the hospital, the

tax-exempt benefits received by the hospital, and other factors

that may be unique to the hospital, such as the hospital's volume

of Medicare and Medicaid patients. These criteria shall not be

determinative factors, but shall be guidelines contributing to

the hospital's decision along with other factors that may be

unique to the hospital. The formulas in Subsections (a)(2), (3),

and (4) shall also not be considered determinative of a

reasonable amount of charity care and government-sponsored

indigent health care.

(i) The requirements of this section shall not apply to the

extent a hospital or hospital system demonstrates that reductions

in the amount of community benefits, charity care, and

government-sponsored indigent health care are necessary to

maint

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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