Articles

Property Tax Law Change Affects Home Corporations

Doug Oldmixon, State Advocate

(This is a reprint of an article that first appeared in September 2009. Councils are urged most strongly to take advantage of this beneficial law, qualify any home association for a property tax exemption and use the resulting funds to maximize the impact of the council’s charitable works and donations. Assistance is still available for those who need it.)

Knights of Columbus councils in Texas that sponsor a home corporation or association to hold title to real property used to further the charitable goals of the council should be aware of a new law that may exempt that property from ad valorem taxes beginning January 1, 2010.

Please read HB 2555 at the following link:
http://www.legis.state.tx.us/BillLookup/Text.aspx?LegSess=81R&Bill=HB2555

Governor Perry signed this act into law on June 19, 2009.  For home corporations that are organized and operated as a 501 C 2 non-profit, the entity may qualify for a certificate from the Texas Comptroller that will allow the county tax office to place the real property on the tax-exempt roll.  Once qualified, the home corporation will need to re-qualify every 5 years.

Please contact your local CPA or tax attorney to assist the home corporation to get your council’s home association organized and be operated in a manner to qualify for this property tax exemption.  If your local tax professional needs additional assistance to accomplish these matters, he or she may contact Roy Rabenaldt, CPA at 972-485-5333 or by email at (JavaScript must be enabled to view this email address).


More Articles