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House Bill 3133 |
House Author: Rodriguez, Eddie |
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Effective: 6-17-11 |
Senate Sponsor: Hinojosa |
House Bill 3133 amends the Tax Code to prohibit property that received a property tax exemption on the basis of its ownership by an organization that constructs or rehabilitates property and uses the property to provide affordable, low-income housing and that was subsequently transferred by that organization to a charitable organization that owns property for the purpose of building or repairing housing with volunteer labor to sell to an individual or family meeting the organization's income eligibility requirements from being exempted under an exemption for the latter organization after the fifth anniversary of the date the transferring organization acquired the property.
The bill establishes that the transfer of property from the former organization to the latter organization is a proper use of and purpose for owning the property under the property tax exemption for the former organization and does not affect the eligibility of the property for such an exemption. The bill requires the chief appraiser of an appraisal district to use the income method of appraisal if property qualifies for the exemption regardless of whether the chief appraiser considers that method to be the most appropriate method of appraising the property.
House Bill 3133 requires the chief appraiser, in appraising real property that was previously owned by a charitable organization that owns property for the purpose of building or repairing housing with volunteer labor to sell to an income-eligible individual or family and that was sold to a low-income individual or family meeting the organization's income eligibility standards under regulations or restrictions limiting the amount that the individual or family was required to pay for the property, to take into account the extent to which that use and limitation and any resale restrictions or conditions applicable to the property established by the organization reduce the property's market value.
The bill also creates an exception to sanctions of additional taxes and interest due when the use of land that was taxed based on agricultural use changes, for real property transferred as addressed by the bill. This exception does not apply to sanctions due to a county or school district unless the sanctions are officially waived by the governing body.