​Q: Can the city annex properties in the ETJ?
A: No. The Texas Legislature has made it extremely difficult for small municipalities to annex properties in their ETJ. As a matter of fact, in the case of Henly, residents in the ETJ would petition the city to be annexed. This petition would have to be voted on and approved before that property could be annexed.

Q: What does the tax-exempt status mean to Friends of Henly and its supporters?

A: The most important effect of being a tax-exempt corporation is that our supporters who donate money to help us toward our goals may use that donation as a deduction on their federal tax return to the extent provided for by law.

In addition, during the first 27 months of a corporation's existence, if the tax-exempt status is granted, anyone who donated money previous to that corporation becoming tax-exempt may also deduct those donations from their federal tax returns to the extend profided for by law.

As Friends of Henly received our tax-exempt status within that time, all past donors may deduct their contributions on their tax returns to the extent profided for by law.

Friends of Henly will mail letters of gift acknowledgement to donors which will be suitable for tax purposes.

PLEASE NOTE:The questions and answers on this page have been researched to the best of our ability.
​In many cases, to ensure accuracy, we've enlisted the assistance of our Municipal Law attorney, Alan Bojorquez.

Q & A about Friends of Henly's tax status

Q & A about the ETJ (Extra Territorial Jurisdiction

Q:Would the Township Model be a good alternative to consider for Henly?
A: After studying the Township model of city government used by The Woodlands, Texas (the only Township in the State of Texas) We've concluded that the Township alternative would not be a workable solution for Henly.

​Our conclusions and reasoning for this decision (Click on link)

A Description of the Woodlands from their Web Site (Click on link)
George Mitchell's Vision for the Woodlands (Click on link)
Enabling Legislation for formation of The Woodlands Township (Click on link)

Q:Can the city take away or alter our Ag or Wildlife exemptions to gain more tax dollars?
A:  Those exemptions are regulated by the state in this case. The exemptions can't be altered unless the land owner changes the use of the land.

Q:Can the city raise the taxes of people living in the ETJ?

A:No. A small municipality like Henly has no taxing authority in the ETJ.

Q: What is a 501(c)(3) incorporation?

A: ​Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. 
The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may be profitable to any private shareholder or individual.

Q & A about Property Tax Exemptions

Q & A about Alternatives to Incorporation:
​Townships