By: Brown H.B. No. 3704
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the taxation of political subdivisions of the state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.1825, Tax Code, is amended by adding
  Subsection (z) to read as follows:
         (z)(1)  A community housing development organization
  entitled to an exemption from taxation under this section is also
  entitled to an exemption from taxation of the buildings and other
  real and tangible personal property that are owned by the
  organization, and except as provided by Subsection (z)(2) are used
  exclusively by the organization in the administration of its
  acquisition, building, repair, sale, or rental of property, or by
  political subdivisions of the state that:
               (a)  are eligible for an exemption from taxation under
  Chapter 11 of this code, and
               (b)  are exempt from federal income taxes or have their
  revenue exempted from federal income taxes under Section 115 of the
  Internal Revenue Code.
         (2)  Use of property exempt by reason of this subsection by
  persons not qualifying under (z)(1) above does not result in the
  loss of an exemption authorized by this Subsection (z) if such use
  is incidental to or furthers the exempt purposes of the owner or an
  organization qualified under (1)(a) and (b) above.
         SECTION 2.  This Act takes effect September 1, 2011.