BILL ANALYSIS |
C.S.H.B. 3064 |
By: Coleman |
Ways & Means |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
There are concerns regarding the property tax exemption for affordable housing developments in certain highly populated counties. Interested parties assert that the property tax exemption for rental developments was reduced and that the exemption should be raised to maintain the ability to provide affordable housing and to avoid passing costs to low-income residents. C.S.H.B. 3064 seeks to address this issue.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 3064 amends the Tax Code to entitle the owner of real property used by certain organizations to construct or rehabilitate certain low-income housing to a property tax exemption of 100 percent of the property's appraised value, regardless of whether the owner meets certain other eligibility requirements necessary to receive a property tax exemption for constructing or rehabilitating low-income housing, if the following conditions are met: · the owner is exempt from federal income taxation by being listed as a charitable organization exempted from federal income tax under the federal Internal Revenue Code of 1986 and the owner otherwise qualifies for a property tax exemption for constructing or rehabilitating low-income housing; · the property was previously owned by a local government corporation created by a municipality under the Texas Transportation Corporation Act, the Texas Housing Finance Corporations Act, or a predecessor statute for purposes that include promoting, developing, encouraging, and maintaining affordable housing in a tax increment financing reinvestment zone created by the municipality under the Tax Increment Financing Act; and · the property is located in a county with a population of at least four million.
C.S.H.B. 3064 applies only to property taxes imposed for a tax year beginning on or after the effective date of the bill.
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EFFECTIVE DATE
January 1, 2016.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 3064 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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