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A BILL TO BE ENTITLED
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AN ACT
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relating to taxation of property owned or controlled by a public |
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facility corporation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 303.042, Local Government Code, is |
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amended by amending Subsections (c) and (d) and adding Subsections |
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(c-1), (c-2), (f), and (g) to read as follows: |
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(c) A corporation is engaged exclusively in the performance |
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of charitable functions and the corporation and property owned by |
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the corporation are [is] exempt from taxation by this state or a |
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municipality or other political subdivision of this state. Bonds |
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issued by a corporation under this chapter, a transfer of the bonds, |
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interest on the bonds, and a profit from the sale or exchange of the |
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bonds are exempt from taxation by this state or a municipality or |
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other political subdivision of this state. |
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(c-1) The legal owner of property that is not a corporation |
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created under this chapter is exempt from property taxation with |
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respect to that property if: |
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(1) the corporation owns 100 percent of the legal |
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owner of the property; or |
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(2) the legal owner of the property is exclusively |
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controlled by the corporation and: |
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(A) is organized under the laws of this state; |
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(B) has its principal place of business in this |
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state; and |
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(C) has equitable title to the property. |
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(c-2) Property described by Subsection (c) is exempt from |
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taxation under that subsection if the property is owned by a tax |
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credit partnership or limited liability company and the general |
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partner or member, as applicable, is or is controlled by a public |
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facility corporation holding equitable title to the property under |
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an option to acquire the property on terms negotiated between the |
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parties to the option agreement. |
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(d) An exemption under this section for a multifamily |
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residential development which is owned by a public facility |
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corporation created by a housing authority under this chapter and |
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which does not have at least 20 percent of its units reserved for |
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public housing units, applies only if: |
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(1) the housing authority holds a public hearing, at a |
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regular meeting of the authority's governing body, to approve the |
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development; and |
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(2) at least 50 percent of the units in the multifamily |
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residential development are reserved for occupancy by individuals |
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and families earning less than 60 [80] percent of the area median |
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family income. |
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(f) For purposes of this section, the following are |
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considered to own property: |
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(1) persons with legal title to property; and |
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(2) persons with equitable title to property, |
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established by the present right to compel the conveyance of legal |
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title to the property in accordance with the law of this state, |
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including by having an option to acquire the property. |
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(g) For purposes of this section, a person is considered to |
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control another if the person has the power to manage, direct, |
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superintend, restrict, regulate, govern, administer, or oversee |
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the other person. A corporation is considered to control a limited |
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partnership only if the corporation directly or through a wholly |
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owned subsidiary controls 100 percent of the general partner |
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interest. A corporation is considered to control a limited |
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liability company only if the corporation is the sole manager or |
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managing member of the company. |
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SECTION 2. This Act takes effect January 1, 2012. |