82(R) HB 3704 - Introduced version

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION


May 1, 2011

TO:	Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means

FROM:	John S O'Brien, Director, Legislative Budget Board

IN RE:	HB3704 by Brown (Relating to the taxation of political subdivisions of the state.), As Introduced

The bill's provision that would exempt certain administrative property owned by low income housing organizations would create a cost to the state through the operation of the school funding formula.

The bill would amend Section 11.1825 of the Tax Code to provide a property tax exemption for real and tangible personal property owned by an eligible low income housing organization and used exclusively by the organization in the administration of certain low income housing activities, or used by a political subdivision of this state. Use of the property by persons who would not otherwise qualify for the exemption would not result in disqualification for the exemption if the use is incidental to, or furthers the exempt purposes of, the owner or qualified organization.

The bill's provision that would exempt certain administrative property owned by low income housing organizations would create a cost to units of local government and to the state through the operation of the school funding formula. The amount and value of the administrative property that would be exempted from property taxes under the bill is unknown. Consequently, the fiscal impact cannot be estimated.

The bill would take effect on September 1, 2011.

Local Government Impact

The bill's provision that would exempt certain administrative property owned by low income housing organizations would create a cost to units of local government.