HomeMy WebLinkAboutPR 15298: TAX EXEMPTIONS FOR CHARITABLE ORGANIZATIONSMemoYandum
City of Port Arthur, Texas
Finance Department
To: Steve Fitzgibbons, City Manager
From: Rebecca Underhill, Assistant Ci
Date: May 28, 2009
Subject: Proposed Resolution 15298
Section 11.184 of the Texas Property Tax Code was amended to provide exemption from property tax for
organizations that are certified "primazily chazitable° by the Controller of Public Accounts. The Controller
has certified the Masonic Lodge, Lakeshore Lodge #256 and the Fraternal Order of Eagles as primazily
charitable. These organizations have applied for exemption from the City of Port Arthur. When the
Council grants the exemption, it will apply to all certified chazitable organizations for the 2009 tax yeaz.
Once the Council approves the exemption provisions, it can apply to any organization certified "primarily
charitable" by the Controller.
BUDGETARY EFFECT
ty ager
The estimated cost of this exemption is $ 1,530 for these three organizations.
P. R. NO. 15298
JJA: 05/28/09
RESOLUTION NO.
A RESOLUTION APPROVING TAX EXEMPTIONS FOR
CHARITABLE ORGANIZATIONS AS ALLOWED UNDER
SECTION 11.184 PROPERTY TAX CODE
WHEREAS, legislation was enacted that allows taxing entities the option of granting an exemption
to organizations that aze engaged primarily in charitable activities; and
WHEREAS, organizations that are engaged exclusively in chazitable activities are currently exempt
under Section 11.18 of the Property Tax Code; and
WHEREAS, the City Council of the City of Port Arthur deems it to be in the best interest of the
citizens of Port Arthur to grant such exemptions to organizations that are engaged primarily in charitable
activities; and
WHEREAS, if the City grants this exemption, the delineation of whether qualified charitable
organizations aze engaged primarily in chazitable activities is left to the State of Texas Comptroller; and
WHEREAS, the Masonic Lodge, the Lakeshore Lodge #256 and the Fraternal Order of Eagles have
asked for the Council to approve this tax exemption; and
WHEREAS, The legislation provides for exemption of up to five (5) years and for an organization
to continue to receive an exemption, the organization must obtain a new determination letter and reapply
for this exemption, per Section 11.185 Tax Code V.T.C.A. ;and
WHEREAS, The City would prefer to condition its approval that the exemption only be on an
annual basis; and
WHEREAS, on August 6, 2002 the City Council approved Resolution 02-235 granting this
exemption for 2002; and
WHEREAS, on July 22, 2003 the City Council approved Resolution 03-195 granting this
exemption for 2003; and
WHEREAS, on July 6, 2004, the City Council approved Resolution 04-206 granting this exemption
for 2004; and
WHEREAS, on August 2, 2005, the City Council approved Resolution OS-232 granting this
exemption for 2005; and
WHEREAS, on June 20, 2006, the City Council approved Resolution 06-220 granting this
exemption for 2006; and
WHEREAS, on June 5, 2007, the City Council approved Resolution 07-259 granting this
exemption for 2007; and
WHERAS, on July 1, 2008, the City Council approved Resolution 08-273 granting this exemption
for 2008.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City Council grants exemptions to organizations that aze primazily engaged
in charitable activities as delineated under Section 11.184 of the Property Tax Code.
Section 3. That the City Council will reconsider adoption of this exemption annually.
Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED, AND APPROVED, this day of June, 2009 AD, at a Regulaz Meeting
of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor:
Councilmembers:
Mayor
ATTEST:
Terri Hanks, City Secretary
APPROVED AS TO FORM:
~'`7-~ ~`~r_
Mark Sokolow, City Attorney
APPROVED FOR ADMINISTRATION:
S ve Fitzgibbons, City Manager
Rebecca Underhill, Assistant City Manager
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