TX HB5478

Eliminates the 5-year expiration requirement for ad valorem tax exemptions for charitable organizations, allowing exemptions to continue until the organization no longer owns the property or the comptroller determines the organization no longer qualifies

Requires charitable organizations receiving the exemption to notify the comptroller and chief appraiser within 30 days of material changes, including property sale, loss of IRS 501(c)(3) status, or loss of state sales tax exemption eligibility

Provides automatic reinstatement of exemptions that expired before September 1, 2025, for organizations that still own the property, have a valid comptroller determination letter, and submit a written request with required documentation

Entitles organizations with reinstated exemptions to refunds of taxes paid during the gap period when their exemption had lapsed, with refunds due within 30 days of approval

Adds Section 11.184 charitable organization exemptions to the list of exemptions that, once allowed, do not need to be reclaimed annually and continue until ownership or qualification status changes

Takes effect January 1, 2026