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Home My WebLink About026820 RES - 06/06/2006RESOLUTION APPROVING GUIDELINES REGARDING REQUEST FROM QUALIFIED CHARITABLE ORGANIZATION FOR PROPERTY TAX EXEMPTION UNDER SECTION 11.184 OF THE TAX CODE WHEREAS, Section 11.184 of the Texas Tax Code authorizes taxing units to grant property tax exemptions to "qualified charitable organizations" in compliance with Section 11.184 of the Tax Code. WHEREAS, qualified charitable organization" is defined in Section 11.184 of the Texas Tax Code to mean a "statewide charitable organization" or a "local charitable organization WHEREAS, "statewide charitable organization" is defined in Section 11.184 of the Texas Tax Code to mean a statewide organization that, with respect to its activities in this state, is engaged primarily in performing functions listed in Section 11.18 (d) of the Tax Code; WHEREAS, `local charitable organization is defined in Section 11.184 of the Texas Tax Code to mean a statewide organization that is a chapter, subsidiary or branch of a statewide charitable organization; and with respect to its activities in this state, is engaged primarily in performing functions listed in Section 11.18(d) of the Tax Code; WHEREAS, section 11.18 (d) of the Tax Code provides that to qualify as a charitable organization under Section 11.18 of the Tax Code, an organization must be organized exclusively to perform religious, charitable, scientific, literary, or educational purposes. and engage in performing at least one of the following charitable functions: (1) providing medical care, (2) providing support to individuals in need including the poor, orphaned children. abused spouses.. and victims of natural disasters; families children and abused families, in need: (3) support to the elderly, (4) preservation of historical sites, (5) support for zoo library, or the art facilities, (6) humane animal care; (7) water for public use; (8) fire response (9) youth athletics; (10) wildlife preservation; (11) educational scholarships; (12) halfway house services; (13) elderly housing; (14) promotion of the arts; (15) charitable solicitations; (16) scientific research; (17) operating television station that receives grants from Corporation for Public Broadcasting; (18) low to moderate income housing (19) housing needs for elderly or (20) housing for students of an institution of higher education. WHEREAS, the City of Corpus Christi desires to adopt guidelines regarding requests from "qualified charitable organizations" regarding property tax exemption under Section 11 184 of the Tax Code; NOW, THEREFORE, BE IT RESOLVED by the City of Corpus Christi that these Guidelines Regarding Requests from Qualified Charitable Organizations for Property Tax Exemption under Sectior 11.184 of the Tax Code be adopted: SECTION 1. DEFINITIONS. (a) In this policy ,1) "Local charitable organization" means an organization that: (A) is a chapter, subsidiary, or branch of a statewide charitable organization; and (B) with respect to its activities in this state, is engaged primarily in performing functions listed in Section 11.18(d) of the Tax Code. (2) "Qualified charitable organization" means a statewide charitable organization or a local charitable organization. 1 3) "Statewide charitable organization" means a statewide organization that, with respect to its activities in this state, is engaged primarily in performing functions listed in Section 11 18(d) of the Tax Code. SECTION 2. APPLICATION. To apply for an exemption under this policy, the organization must provide the following information to the City Director of Financial Services: (;1) Cover letter identifying the name of the organization. and legal description of property; (2) Copy of the most recent tax statement issued by Nueces County Tax Assessor and Collector (3) Determination from the State of Texas Comptroller Office that the organization is engaged primarily in performing functions listed in Section 11.18(d) and is eligible for an exemption under Section 11 184 of the Tax Code. (4) Evidence that the organization is recognized by the Internal Revenue Service as a tax - exempt organization under Section 501 of the Internal Revenue Code of 1986; (5) Evidence that the organization is entitled to issue an exemption certificate from sates taxes under Section 151.310 of the Tax Code: (6) Evidence that the charter or bylaws of the organization require charitable work or public service: (7) Evidence establishing that the amount of monetary support contributed or in -kind charitable or public service performed by the organization in proportion to the organization's operating expenses, the amount of dues received by the organization; and the taxes imposed on the organization's property during the preceding year if the property was taxed it that year; and (8) Evidence that the organization is current with all taxes, city utilities, and does not have any pending litigation with the city; (9) Any other factor the City Director of Financial Services deems relevant for evaluation of the request. SECTION 3. ELIGIBLE PROPERTY AND PERIODS OF EXEMPTION. (a) If approved as provided below, a qualified charitable organization is entitled to an exemption from taxation of 1 ° the buildings and other real property and the tangible personal property that: (A) are owned by the organization; and (B) except as permitted by Subsection (b), are used exclusively by the organization and other organizations eligible for an exemption from taxation under Section 11.184 or Section 11.18 of the Tax Code; and (2) the real property owned by the 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 the organization and other organizations eligible for an exemption from taxation under this section or Section 11.18 of the Tax Code; and (B) the land on which the incomplete improvement is located that will be reasonably necessary for the use of the improvement by the organization and other organizations eligible for an exemption from taxation under Section 11 184 or Section 11.18 of the Tax Code. (b) Use of exempt property by persons who are not charitable organizations eligible for an exemption from taxation under this policy or Section 11.18 of the Tax Code does not result in the loss of an exemption authorized by this section if the use is incidental to use by those charitable organizations and limited to activities that benefit the charitable organization that owns or uses the property. (c) An exemption under this policy regarding incomplete improvements expires at the end of the third tax year in which the exemption is granted. All other exemptions under this policy expire at the end of the fifth tax year after the year in which the exemption is granted To continue to receive an exemption under this policy, the organization must reapply for the exemption. SECTION 4. REVIEW. After receipt of an application for exemption, the City Director of Financial Services shall review the application for completeness with this policy. b) After receipt of a completed application, the City Director of Financial Services shall determine the impact of the proposed tax exemption. c) Upon receipt of a completed application, the City Director of Financial Services shall forward a copy of the application to the City Manager and City Council for review and consideration. along with statement of impact of the proposed tax exemption. An exemption may not be granted unless 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) Required Findings. in order to approve a request, the City Council must find that the application meets these guidelines. (f) Reservation of Rights. Nothing herein shall be construed to limit the authority of the City to examine each application for tax exemption before it on a case -by -case basis and determine in its sole and absolute discretion whether or not it complies with these Guidelines SECTION 5. SALE OF PROPERTY. (a) Sale of property. In the event the exemption is granted and the property is sold during the period of exemption, then organization shall immediately provide written notice of such sale to City Director of Financial Services. The exemption shall immediately terminate upon date of sale. ATTEST: Armando Chapa City Secretary APPROVED: June 1, 2006 .� L Lisa Aguilar Assistant City Attorney for City Attorney THE ►1 OF CORPUS CHRISTI H-nry Garre Mayor Corpus Christi, Texas day of , 2C)06 The above resolution was passed by the following vote: Henry Garrett Brent Chesney Melody Cooper Jerry Garcia William Kelly Rex A Kinnison John E. Marez Jesse Noyola Mark Scott