85R3090 CJC-F     By: Murphy H.B. No. 382       A BILL TO BE ENTITLED   AN ACT   relating to the exemption from ad valorem taxation of real property   leased to and used by certain schools.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by   adding Section 11.211 to read as follows:          Sec. 11.211.  REAL PROPERTY LEASED TO CERTAIN SCHOOLS. (a)     A person is entitled to an exemption from taxation of the real   property that the person owns and leases to an open-enrollment   charter school authorized by Subchapter D, Chapter 12, Education   Code, that is qualified as provided by Section 11.21(d) of this code   if:                (1)  the real property is used exclusively by the   school for educational functions;                (2)  the real property is reasonably necessary for the   operation of the school;                (3)  the owner certifies by affidavit to the school   that the rent for the lease of the real property will be reduced by   an amount equal to the amount by which the taxes on the property are   reduced as a result of the exemption;                (4)  the owner provides the school with a disclosure   document stating the amount by which the taxes on the real property   are reduced as a result of the exemption and the method the owner   will implement to ensure that the rent charged for the lease of the   property fully reflects that reduction; and                (5)  the rent charged for the lease of the real property   reflects the reduction in the amount of taxes on the property   resulting from the exemption through a monthly or annual credit   against the rent.          (b)  Section 25.07 does not apply to a leasehold interest in   property for which the owner receives an exemption under this   section.          SECTION 2.  This Act applies only to ad valorem taxes imposed   for a tax year beginning on or after the effective date of this Act.          SECTION 3.  This Act takes effect January 1, 2018, but only   if the constitutional amendment proposed by the 85th Legislature,   Regular Session, 2017, authorizing the legislature to exempt from   ad valorem taxation real property leased to certain schools   organized and operated primarily for the purpose of engaging in   educational functions is approved by the voters. If that amendment   is not approved by the voters, this Act has no effect.