1-1 By: Truan, Lucio S.B. No. 1048 1-2 (In the Senate - Filed March 7, 1997; March 12, 1997, read 1-3 first time and referred to Committee on Finance; May 5, 1997, 1-4 reported favorably, as amended, by the following vote: Yeas 12, 1-5 Nays 0; May 5, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Truan 1-7 Amend S.B. No. 1048, Section 11.182, on page 1, line 43, by adding 1-8 a new Subsection (c) to read as follows and renumbering subsequent 1-9 sections appropriately: 1-10 (c) A person claiming an exemption for property described 1-11 under this section must comply with the requirements of Sections 1-12 11.43(a) and (b). 1-13 A BILL TO BE ENTITLED 1-14 AN ACT 1-15 relating to exempting from ad valorem taxation property owned by 1-16 certain organizations constructing, repairing, and providing 1-17 housing for low-income and moderate-income persons. 1-18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-19 SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by 1-20 adding Section 11.182 to read as follows: 1-21 Sec. 11.182. COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS 1-22 IMPROVING PROPERTY FOR LOW-INCOME AND MODERATE-INCOME HOUSING. 1-23 (a) An organization is entitled to an exemption from taxation of 1-24 improved or unimproved real property it owns if the organization: 1-25 (1) is organized as a community housing development 1-26 organization; 1-27 (2) meets the requirements of a charitable 1-28 organization provided by Sections 11.18(e) and (f); 1-29 (3) owns the property for the purpose of building or 1-30 repairing housing on the property to sell without profit to a 1-31 low-income or moderate-income individual or family satisfying the 1-32 organization's eligibility requirements or to rent without profit 1-33 to such an individual or family; and 1-34 (4) engages exclusively in the building, repair, and 1-35 sale or rental of housing as described by Subdivision (3) and 1-36 related activities. 1-37 (b) Property owned by the organization may not be exempted 1-38 under Subsection (a) after the third anniversary of the date the 1-39 organization acquires the property unless the organization is 1-40 offering to rent or is renting the property without profit to a 1-41 low-income or moderate-income individual or family satisfying the 1-42 organization's eligibility requirements. 1-43 (c) An organization entitled to an exemption under 1-44 Subsection (a) is also entitled to an exemption from taxation of 1-45 any building or tangible personal property the organization owns 1-46 and uses in the administration of its acquisition, building, 1-47 repair, sale, or rental of property. To qualify for an exemption 1-48 under this subsection, property must be used exclusively by the 1-49 organization, except that another person may use the property for 1-50 activities incidental to the organization's use that benefit the 1-51 beneficiaries of the organization. 1-52 (d) In this section "community housing development 1-53 organization" has the meaning assigned that term by 42 U.S.C. 1-54 Section 12704. 1-55 SECTION 2. Subsection (a), Section 11.436, Tax Code, is 1-56 amended to read as follows: 1-57 (a) An organization that acquires property that qualifies 1-58 for an exemption under Section 11.181(a) or 11.182(a) may apply for 1-59 the exemption for the year of acquisition not later than the 30th 1-60 day after the date the organization acquires the property, and the 1-61 deadline provided by Section 11.43(d) does not apply to the 1-62 application for that year. 1-63 SECTION 3. Subsection (a), Section 26.111, Tax Code, is 1-64 amended to read as follows: 2-1 (a) If an organization acquires taxable property that 2-2 qualifies for and is granted an exemption under Section 11.181(a) 2-3 or 11.182(a) for the year in which the property was acquired, the 2-4 amount of tax due on the property for that year is calculated by 2-5 multiplying the amount of taxes imposed on the property for the 2-6 entire year as provided by Section 26.09 by a fraction, the 2-7 denominator of which is 365 and the numerator of which is the 2-8 number of days in that year before the date the charitable 2-9 organization acquired the property. 2-10 SECTION 4. This Act takes effect January 1, 1998. 2-11 SECTION 5. The importance of this legislation and the 2-12 crowded condition of the calendars in both houses create an 2-13 emergency and an imperative public necessity that the 2-14 constitutional rule requiring bills to be read on three several 2-15 days in each house be suspended, and this rule is hereby suspended. 2-16 * * * * *