Relating to the exemption from ad valorem taxation of property owned by an organization engaged primarily in performing charitable functions.

HB 131 updates Texas property tax rules for charitable organizations. It requires nonprofits (like hospitals or shelters) that own tax-exempt property to notify tax officials within 30 days of major changes, such as selling the property or losing IRS 501(c)(3) status. For exemptions expiring before January 1, 2026, the bill automatically reinstates them if the organization submits proof of prior exemption and a valid IRS letter, preventing tax liability during the transition. Organizations that paid taxes during the gap between expiration and reinstatement will receive refunds.