Tex. Tax Code Section 11.231
Nonprofit Community Business Organization Providing Economic Development Services to Local Community


(a)

In this section, “nonprofit community business organization” means an organization that meets the following requirements:

(1)

the organization has been in existence for at least the preceding five years;

(2)

the organization:

(A)

is a nonprofit corporation organized under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon’s Texas Civil Statutes) or a nonprofit corporation formed under the Texas Nonprofit Corporation Law, as described by Section 1.008 (Short Titles), Business Organizations Code;

(B)

is a nonprofit organization described by Section 501(c)(6), Internal Revenue Code of 1986; and

(C)

is not a statewide organization;

(3)

for at least the preceding three years, the organization has maintained a dues-paying membership of at least 50 members; and

(4)

the organization:

(A)

has a board of directors elected by the members;

(B)

does not compensate members of the board of directors for service on the board;

(C)

with respect to its activities in this state, is engaged primarily in performing functions listed in Subsection (d);

(D)

is primarily supported by membership dues and other income from activities substantially related to its primary functions; and

(E)

is not, has not formed, and does not financially support a political committee as defined by Section 251.001 (Definitions), Election Code.

(a-1)

In addition to an organization described by Subsection (a), in this section, “nonprofit community business organization” also means a Type A corporation governed by Chapter 504 (Type a Corporations), Local Government Code, and a Type B corporation governed by Chapter 505 (Type B Corporations), Local Government Code.

(b)

An association that qualifies as a nonprofit community business 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 nonprofit community business organization; and

(B)

except as permitted by Subsection (c), are used exclusively by qualified nonprofit community business organizations to perform their primary functions; and

(2)

the real property owned by the nonprofit community business 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 nonprofit community business 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 nonprofit community business organizations.

(c)

Use of exempt property by persons who are not nonprofit community business 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 nonprofit community business organizations and limited to activities that benefit the beneficiaries of the nonprofit community business organizations that own or use the property.

(d)

To qualify for an exemption under this section, a nonprofit community business organization must be engaged primarily in performing one or more of the following functions in the local community:

(1)

promoting the common economic interests of commercial enterprises;

(2)

improving the business conditions of one or more types of business; or

(3)

otherwise providing services to aid in economic development.

(e)

In this section, “building” includes the land that is reasonably necessary for use of, access to, and ornamentation of the building.

(f)

A property may not be exempted under Subsection (b)(2) for more than three years.

(g)

For purposes of Subsection (b)(2), an incomplete improvement is under physical preparation if the nonprofit community business 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.
Added by Acts 2009, 81st Leg., R.S., Ch. 1417 (H.B. 770), Sec. 3, eff. January 1, 2010.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1255 (H.B. 1905), Sec. 20(a), eff. January 1, 2016.

Source: Section 11.231 — Nonprofit Community Business Organization Providing Economic Development Services to Local Community, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­11.­htm#11.­231 (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

§ 11.231’s source at texas​.gov