75R11868 JD-D                           

         By Oliveira                                           H.B. No. 1201

         Substitute the following for H.B. No. 1201:

         By Oliveira                                       C.S.H.B. No. 1201

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to exempting from ad valorem taxation by a county or

 1-3     municipality property owned by certain organizations constructing,

 1-4     repairing, and providing housing for low-income and moderate-income

 1-5     persons.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by

 1-8     adding Section 11.182 to read as follows:

 1-9           Sec. 11.182.  COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS

1-10     IMPROVING PROPERTY FOR LOW-INCOME AND MODERATE-INCOME HOUSING.

1-11     (a)  An organization is entitled to an exemption from taxation by a

1-12     county or municipality of improved or unimproved real property it

1-13     owns if the organization:

1-14                 (1)  is organized as a community housing development

1-15     organization;

1-16                 (2)  meets the requirements of a charitable

1-17     organization provided by Sections 11.18(e) and (f);

1-18                 (3)  owns the property for the purpose of building or

1-19     repairing housing on the property to sell without profit to a

1-20     low-income or moderate-income individual or family satisfying the

1-21     organization's eligibility requirements or to rent without profit

1-22     to such an individual or family; and

1-23                 (4)  engages exclusively in the building, repair, and

1-24     sale or rental of housing as described by Subdivision (3) and

 2-1     related activities.

 2-2           (b)  Property owned by the organization may not be exempted

 2-3     under Subsection (a) after the third anniversary of the date the

 2-4     organization acquires the property unless the organization is

 2-5     offering to rent or is renting the property without profit to a

 2-6     low-income or moderate-income individual or family satisfying the

 2-7     organization's eligibility requirements.

 2-8           (c)  An organization entitled to an exemption under

 2-9     Subsection (a) is also entitled to an exemption from taxation by a

2-10     county or municipality of any building or tangible personal

2-11     property the organization owns and uses in the administration of

2-12     its acquisition, building, repair, sale, or rental of property.  To

2-13     qualify for an exemption under this subsection, property must be

2-14     used exclusively by the organization, except that another person

2-15     may use the property for activities incidental to the

2-16     organization's use that benefit the beneficiaries of the

2-17     organization.

2-18           (d)  In this section "community housing development

2-19     organization" has the meaning assigned that term by 42 U.S.C.

2-20     Section 12704.

2-21           SECTION 2.  Section 11.436, Tax Code, is amended to read as

2-22     follows:

2-23           Sec. 11.436.  APPLICATION FOR EXEMPTION OF CERTAIN PROPERTY

2-24     USED FOR LOW-INCOME HOUSING.  (a)  An organization that acquires

2-25     property that qualifies for an exemption under Section 11.181(a) or

2-26     11.182(a) may apply for the exemption for the year of acquisition

2-27     not later than the 30th day after the date the organization

 3-1     acquires the property, and the deadline provided by Section

 3-2     11.43(d) does not apply to the application for that year.

 3-3           (b)  If the application is granted, the exemption for that

 3-4     year applies only to the portion of the year in which the property

 3-5     qualifies for the exemption, as provided by Section 26.111.  If the

 3-6     application is granted after approval of the appraisal records by

 3-7     the appraisal review board, the chief appraiser shall notify the

 3-8     collector for each taxing unit in which the property is located and

 3-9     to which the exemption applies.  The collector for a taxing unit to

3-10     which the exemption applies shall calculate the amount of tax due

3-11     on the property in that year as provided by Section 26.111 and

3-12     shall refund any amount paid in excess of that amount.

3-13           SECTION 3.  Section 26.111(a), Tax Code, is amended to read

3-14     as follows:

3-15           (a)  If an organization acquires taxable property that

3-16     qualifies for and is granted an exemption under Section 11.181(a)

3-17     or 11.182(a) for the year in which the property was acquired, the

3-18     amount of tax due on the property for that year is calculated by

3-19     multiplying the amount of taxes imposed on the property for the

3-20     entire year as provided by Section 26.09 by a fraction, the

3-21     denominator of which is 365 and the numerator of which is the

3-22     number of days in that year before the date the charitable

3-23     organization acquired the property.

3-24           SECTION 4.  This Act takes effect January 1, 1998.

3-25           SECTION 5.  The importance of this legislation and the

3-26     crowded condition of the calendars in both houses create an

3-27     emergency and an imperative public necessity that the

 4-1     constitutional rule requiring bills to be read on three several

 4-2     days in each house be suspended, and this rule is hereby suspended.