SRC-SEW H.B. 1392 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1392
By: Keffer (Staples)
Intergovernmental Relations
5/4/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, property owned by community housing development
organizations (CHDOs) are exempted from ad valorem taxation. This exemption
is potentially vital to the continued preservation and development of
affordable housing in Texas. However, CHDOs are required to refile
applications for exemptions every year. This annual redetermination may
weaken the impact of the exemption because the resulting property tax
savings are potentially given less weight when analyzing the CHDOs net
operating income to obtain financing.  H.B.1392 adds the CHDO exemption to
the list of other charitable exemptions that qualify for a one-time
application for exemption.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 11.43(c), Tax Code, to provide that an exemption
provided by Section 11.182, once allowed, need not be claimed in subsequent
years, and except as otherwise provided by Subsection (e), the exemption
applies to the property until it changes ownership or the person's
qualification for the exemption changes.  Makes nonsubstantive changes.   

SECTION 2.  Amends Section 11.182, Tax Code, by adding Subsection (f), to
require an organization, if any property owned by the organization
receiving an exemption under this section has been acquired or sold during
the preceding year, to file by March 31 of the following year with the
chief appraiser in the county in which the relevant property is located, on
a form promulgated by the comptroller of public accounts, a list of such
properties acquired or sold during the preceding year. 

SECTION 3.  Repealer:  Section 11.182(c) (regarding Community Housing
Development Organizations Improving Property for Low-Income and
Moderate-Income Housing), Tax Code. 
 
SECTION 4.  Effective date:  January 1, 2002.