HBA-KDB H.B. 1392 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1392
By: Keffer
Ways & Means
4/1/2001
Committee Report (Amended)



BACKGROUND 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.  House Bill 1392 adds the CHDO
exemption to the list of other charitable exemptions that qualify for a
one-time application for exemption. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1392 amends the Tax Code to add  exemptions from taxation for
community housing development organizations (CHDO) that improve property
for low-income and moderate-income housing to the list of exemptions that
need not be claimed  in subsequent years. 

The bill repeals the provision that a person claiming a tax exemption for a
CHDO  must apply for the exemption for each year the person claims the
exemption. 

EFFECTIVE DATE

January 1, 2002.

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 requires an organization, if any property owned
by the organization receiving an exemption from taxation for community
housing development organizations 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.