By:  Talton                                                       H.B. No. 1992



A BILL TO BE ENTITLED

AN ACT

relating to eligibility for an exemption from ad valorem taxation 
for property owned for the purpose of providing low-income or 
moderate-income housing.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.182, Tax Code, is amended by adding 
Subsections (b-1), (b-2), and (h-1) to read as follows:
	(b-1)  Notwithstanding Subsection (b), an owner of property 
is entitled to an exemption from taxation of the property under this 
section if the property otherwise qualifies for the exemption and 
the owner is a limited partnership of which an organization that 
meets the requirements of Subsection (b) controls 100 percent of 
the general partner interest.
	(b-2)  An owner that otherwise qualifies for an exemption 
from taxation of property under this section is entitled to the 
exemption even if the organization leases the property to a limited 
partnership, provided that the organization controls 100 percent of 
the general partner interest in the partnership.
	(h-1)  Notwithstanding any other provision of this section, 
an owner is entitled to an exemption from taxation of property under 
this section by each taxing unit in which the property is located 
if:
		(1)  before January 1, 2004, the owner entered into an 
agreement for the benefit of any taxing unit in which the property 
is located to:
			(A)  make payments in lieu of taxes on the 
property to the taxing unit; and
			(B)  use the property for the purpose described by 
Subsection (b)(3) or (f); and
		(2)  the owner is in compliance with the agreement in 
the current tax year, as described by the taxing unit that is a 
party to the agreement.
	SECTION 2.  (a) This Act applies only to taxes imposed for a 
tax year beginning on or after January 1, 2002.
	(b)  This Act applies only to a protest or appeal that is 
pending on the effective date of this Act or is filed on or after the 
effective date of this Act.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.