(a) A nonprofit corporation is exempted from the franchise tax if:
(1) the corporation is organized and operated primarily to obtain, manage, construct, and maintain the property in or of a residential condominium or residential real estate development; and
(2) the owners of individual lots, residences, or residential units control at least 51 percent of the votes of the corporation and that voting control, however acquired, is not held by:
(A) a single individual or family; or
(B) one or more developers, declarants, banks, investors, or other similar parties.
(b) For purposes of this section, a condominium project is considered residential if the project is legally restricted for use as residences. A real estate development is considered residential if the property is legally restricted for use as residences.
Official text of the Texas Tax Code as published by the Texas Legislative Council.