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.