82R9328 ATP-D
 
  By: Hinojosa S.B. No. 1528
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to taxation of property owned or controlled by a public
  facility corporation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 303.042, Local Government Code, is
  amended by amending Subsections (c) and (d) and adding Subsections
  (c-1), (c-2), (f), and (g) to read as follows:
         (c)  A corporation is engaged exclusively in the performance
  of charitable functions and the corporation and property owned by
  the corporation are [is] exempt from taxation by this state or a
  municipality or other political subdivision of this state. Bonds
  issued by a corporation under this chapter, a transfer of the bonds,
  interest on the bonds, and a profit from the sale or exchange of the
  bonds are exempt from taxation by this state or a municipality or
  other political subdivision of this state.
         (c-1)  The legal owner of property that is not a corporation
  created under this chapter is exempt from property taxation with
  respect to that property if:
               (1)  the corporation owns 100 percent of the legal
  owner of the property; or
               (2)  the legal owner of the property is exclusively
  controlled by the corporation and:
                     (A)  is organized under the laws of this state;
                     (B)  has its principal place of business in this
  state; and
                     (C)  has equitable title to the property.
         (c-2)  Property described by Subsection (c) is exempt from
  taxation under that subsection if the property is owned by a tax
  credit partnership or limited liability company and the general
  partner or member, as applicable, is or is controlled by a public
  facility corporation holding equitable title to the property under
  an option to acquire the property on terms negotiated between the
  parties to the option agreement.
         (d)  An exemption under this section for a multifamily
  residential development which is owned by a public facility
  corporation created by a housing authority under this chapter and
  which does not have at least 20 percent of its units reserved for
  public housing units, applies only if:
               (1)  the housing authority holds a public hearing, at a
  regular meeting of the authority's governing body, to approve the
  development; and
               (2)  at least 50 percent of the units in the multifamily
  residential development are reserved for occupancy by individuals
  and families earning less than 60 [80] percent of the area median
  family income.
         (f)  For purposes of this section, the following are
  considered to own property:
               (1)  persons with legal title to property; and
               (2)  persons with equitable title to property,
  established by the present right to compel the conveyance of legal
  title to the property in accordance with the law of this state,
  including by having an option to acquire the property.
         (g)  For purposes of this section, a person is considered to
  control another if the person has the power to manage, direct,
  superintend, restrict, regulate, govern, administer, or oversee
  the other person. A corporation is considered to control a limited
  partnership only if the corporation directly or through a wholly
  owned subsidiary controls 100 percent of the general partner
  interest. A corporation is considered to control a limited
  liability company only if the corporation is the sole manager or
  managing member of the company.
         SECTION 2.  This Act takes effect January 1, 2012.