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.

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