Texas Governor Signs Law Exempting Nonprofit Property From Ad Valorem Tax

The Texas Governor signed a law that amends the State Tax Code to exempt, from ad valorem taxation, all real and personal property owned by nonprofit corporations in counties with populations of 3.3 million or more, when used to promote agriculture, support youth, and provide educational support in the community. The exemption doesn’t apply to any interests held by for-profit lessees of the exempt property. The law takes effect Jan. 1, 2026, and applies only to ad valorem tax years beginning on or after that date. [H.B. 23, enacted 09/17/25]

This story was produced by Bloomberg Tax Automation, and edited ...