Relating to the property tax exemption for certain nonprofit community business organizations.

HB 3438 modifies Texas property tax exemptions for specific nonprofit community business organizations. It defines qualifying organizations as those operating for at least five years, maintaining 50+ dues-paying members for three years, having member-elected boards without paid directors, and focusing on local community business functions (not statewide operations or political activities). The bill requires these organizations to meet all criteria to qualify for the property tax exemption, which applies only to tax years beginning on or after January 1, 2026. This change clarifies eligibility for a tax break previously available to similar groups but not explicitly defined in current law.