Tex. Tax Code Section 11.20
Religious Organizations


(a)

An organization that qualifies as a religious organization as provided by Subsection (c) is entitled to an exemption from taxation of:

(1)

the real property that is owned by the religious organization, is used primarily as a place of regular religious worship, and is reasonably necessary for engaging in religious worship;

(2)

the tangible personal property that is owned by the religious organization and is reasonably necessary for engaging in worship at the place of worship specified in Subdivision (1);

(3)

the real property that is owned by the religious organization and is reasonably necessary for use as a residence (but not more than one acre of land for each residence) if the property:

(A)

is used exclusively as a residence for those individuals whose principal occupation is to serve in the clergy of the religious organization; and

(B)

produces no revenue for the religious organization;

(4)

the tangible personal property that is owned by the religious organization and is reasonably necessary for use of the residence specified by Subdivision (3);

(5)

the real property owned by the religious organization consisting of:

(A)

an incomplete improvement that is under active construction or other physical preparation and that is designed and intended to be used by the religious organization as a place of regular religious worship when complete; and

(B)

the land on which the incomplete improvement is located that will be reasonably necessary for the religious organization’s use of the improvement as a place of regular religious worship;

(6)

the land that the religious organization owns for the purpose of expansion of the religious organization’s place of regular religious worship or construction of a new place of regular religious worship if:

(A)

the religious organization qualifies other property, including a portion of the same tract or parcel of land, owned by the organization for an exemption under Subdivision (1) or (5); and

(B)

the land produces no revenue for the religious organization; and

(7)

the real property owned by the religious organization that is leased to another person and used by that person for the operation of a school that qualifies as a school under Section 11.21 (Schools)(d).

(b)

An organization that qualifies as a religious organization as provided by Subsection (c) of this section is entitled to an exemption from taxation of those endowment funds the organization owns that are used exclusively for the support of the religious organization and are invested exclusively in bonds, mortgages, or property purchased at a foreclosure sale for the purpose of satisfying or protecting the bonds or mortgages. However, foreclosure-sale property that is held by an endowment fund for longer than the two-year period immediately following purchase at the foreclosure sale is not exempt from taxation.

(c)

To qualify as a religious organization for the purposes of this section, an organization (whether operated by an individual, as a corporation, or as an association) must:

(1)

be organized and operated primarily for the purpose of engaging in religious worship or promoting the spiritual development or well-being of individuals;

(2)

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;

(3)

use its assets in performing the organization’s religious functions or the religious functions of another religious organization; and

(4)

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 the assets are to be transferred to this state, the United States, or a charitable, educational, religious, or other similar organization that is qualified as a charitable organization under Section 501(c)(3), Internal Revenue Code of 1954, as amended.

(d)

Use of property that qualifies for the exemption prescribed by Subsection (a)(1) or (2) or by Subsection (h)(1) for occasional secular purposes other than religious worship does not result in loss of the exemption if the primary use of the property is for religious worship and all income from the other use is devoted exclusively to the maintenance and development of the property as a place of religious worship.

(e)

For the purposes of this section, “religious worship” means individual or group ceremony or meditation, education, and fellowship, the purpose of which is to manifest or develop reverence, homage, and commitment in behalf of a religious faith.

(f)

A property may not be exempted under Subsection (a)(5) for more than three years.

(g)

For purposes of Subsection (a)(5), an incomplete improvement is under physical preparation if the religious organization has engaged in architectural or engineering work, soil testing, land clearing activities, or site improvement work necessary for the construction of the improvement or has conducted an environmental or land use study relating to the construction of the improvement.

(h)

Property owned by this state or a political subdivision of this state, including a leasehold or other possessory interest in the property, that is held or occupied by an organization that qualifies as a religious organization as provided by Subsection (c) is entitled to an exemption from taxation if the property:

(1)

is used by the organization primarily as a place of regular religious worship and is reasonably necessary for engaging in religious worship; or

(2)

meets the qualifications for an exemption under Subsection (a)(5).

(i)

For purposes of the exemption provided by Subsection (h), the religious organization may apply for the exemption and take other action relating to the exemption as if the organization owned the property.

(j)

A tract of land that is contiguous to the tract of land on which the religious organization’s place of regular religious worship is located may not be exempted under Subsection (a)(6) for more than 10 years. A tract of land that is not contiguous to the tract of land on which the religious organization’s place of regular religious worship is located may not be exempted under Subsection (a)(6) for more than three years. For purposes of this subsection, a tract of land is considered to be contiguous with another tract of land if the tracts are divided only by a road, railroad track, river, or stream.

(k)

For purposes of Subsection (a)(6), an application or statement accompanying an application for the exemption stating that the land is owned for the purposes described by Subsection (a)(6) and signed by an authorized officer of the organization is sufficient to establish that the land is owned for those purposes.
Acts 1979, 66th Leg., p. 2238, ch. 841, Sec. 1, eff. Jan. 1, 1980. Amended by Acts 1981, 67th Leg., 1st C.S., p. 129, ch. 13, Sec. 35, eff. Jan. 1, 1982; Acts 1987, 70th Leg., ch. 640, Sec. 1, eff. Jan. 1, 1988; Acts 1995, 74th Leg., ch. 458, Sec. 1, eff. June 9, 1995; Acts 1997, 75th Leg., ch. 1039, Sec. 9, eff. Jan. 1, 1998; Acts 1997, 75th Leg., ch. 1411, Sec. 3, eff. June 20, 1997; Acts 1999, 76th Leg., ch. 138, Sec. 3, eff. May 18, 1999; Acts 2003, 78th Leg., ch. 123, Sec. 1, eff. Jan. 1, 2004; Acts 2003, 78th Leg., ch. 288, Sec. 1.04, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 288, Sec. 2.04, eff. Jan. 1, 2006; Acts 2003, 78th Leg., ch. 1052, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 23.001(80), eff. September 1, 2005.
Acts 2021, 87th Leg., R.S., Ch. 206 (H.B. 1197), Sec. 1, eff. January 1, 2022.

Source: Section 11.20 — Religious Organizations, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­11.­htm#11.­20 (accessed Mar. 16, 2024).

11.01
Real and Tangible Personal Property
11.02
Intangible Personal Property
11.11
Public Property
11.12
Federal Exemptions
11.13
Residence Homestead
11.14
Tangible Personal Property Not Producing Income
11.15
Family Supplies
11.16
Farm Products
11.17
Cemeteries
11.18
Charitable Organizations
11.19
Youth Spiritual, Mental, and Physical Development Associations
11.20
Religious Organizations
11.21
Schools
11.22
Disabled Veterans
11.23
Miscellaneous Exemptions
11.24
Historic Sites
11.25
Marine Cargo Containers Used Exclusively in International Commerce
11.26
Limitation of School Tax on Homesteads of Elderly or Disabled
11.27
Solar and Wind-powered Energy Devices
11.28
Property Exempted from City Taxation by Agreement
11.29
Intracoastal Waterway Dredge Disposal Site
11.30
Nonprofit Water Supply or Wastewater Service Corporation
11.31
Pollution Control Property
11.32
Certain Water Conservation Initiatives
11.33
Raw Cocoa and Green Coffee Held in Harris County
11.34
Limitation of Taxes on Real Property in Designated Areas of Certain Municipalities
11.35
Temporary Exemption for Qualified Property Damaged by Disaster
11.36
Child-care Facilities
11.41
Partial Ownership of Exempt Property
11.42
Exemption Qualification Date
11.43
Application for Exemption
11.44
Notice of Application Requirements
11.45
Action on Exemption Applications
11.46
Compilation of Partial Exemptions
11.47
Mail Survey of Residence Homesteads
11.48
Confidential Information
11.49
Legal Title Not Affected
11.50
Provision of Names of Individuals Receiving Residence Homestead Exemption to Another Chief Appraiser
11.111
Public Property Used to Provide Transitional Housing for Indigent Persons
11.132
Donated Residence Homestead of Partially Disabled Veteran
11.133
Residence Homestead of Surviving Spouse of Member of Armed Services Killed in Line of Duty
11.134
Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty
11.135
Continuation of Residence Homestead Exemption While Replacement Structure Is Constructed
11.141
Precious Metal Held in Precious Metal Depository
11.161
Implements of Husbandry
11.181
Charitable Organizations Improving Property for Low-income Housing
11.182
Community Housing Development Organizations Improving Property for Low-income and Moderate-income Housing: Property Previously Exempt
11.183
Association Providing Assistance to Ambulatory Health Care Centers
11.184
Organizations Engaged Primarily in Performing Charitable Functions
11.185
Colonia Model Subdivision Program
11.201
Additional Tax on Sale of Certain Religious Organization Property
11.211
Real Property Leased to Certain Schools
11.231
Nonprofit Community Business Organization Providing Economic Development Services to Local Community
11.251
Tangible Personal Property Exempt
11.252
Motor Vehicles Leased for Use Other than Production of Income
11.253
Tangible Personal Property in Transit
11.254
Motor Vehicle Used for Production of Income and for Personal Activities
11.261
Limitation of County, Municipal, or Junior College District Tax on Homesteads of Disabled and Elderly
11.271
Offshore Drilling Equipment Not in Use
11.311
Landfill-generated Gas Conversion Facilities
11.315
Energy Storage System in Nonattainment Area
11.421
Qualification of Religious Organization
11.422
Qualifications of a School
11.423
Qualification of Charitable Organization or Youth Association
11.424
Conflict Between Governing Regulation of Nonprofit Organization, Association, or Entity and Contract with United States
11.431
Late Application for Homestead Exemption
11.432
Homestead Exemption for Manufactured Home
11.433
Late Application for Religious Organization Exemption
11.434
Late Application for a School Exemption
11.435
Late Application for Charitable Organization Exemption
11.436
Application for Exemption of Certain Property Used for Low-income Housing
11.437
Exemption for Cotton Stored in Warehouse
11.438
Late Application for Veteran’s Organization Exemption
11.439
Late Applications for Disabled Veterans Exemptions
11.1801
Charity Care and Community Benefits Requirements for Charitable Hospital
11.1825
Organizations Constructing or Rehabilitating Low-income Housing: Property Not Previously Exempt
11.1826
Monitoring of Compliance with Low-income and Moderate-income Housing Exemptions
11.1827
Community Land Trust
11.4391
Late Application for Freeport Exemption

Accessed:
Mar. 16, 2024

§ 11.20’s source at texas​.gov