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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation by a school |
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district of certain property used to build low-income or |
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moderate-income housing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.1828 to read as follows: |
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Sec. 11.1828. LOW-INCOME AND MODERATE-INCOME HOUSING NEAR |
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SCHOOL. (a) In this section: |
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(1) "Area median income" means the area median income |
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as determined by the Texas Department of Housing and Community |
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Affairs under Section 2306.123, Government Code. |
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(2) "Rural area" and "urban area" have the meanings |
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assigned by Section 2306.004, Government Code. |
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(b) A person is entitled to an exemption from taxation by a |
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school district of improved and unimproved real property, any part |
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of which is located within a one-mile radius of the center of a |
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campus of that school district that the person owns for the purpose |
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of building: |
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(1) in an urban area: |
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(A) 25 or more new single-family dwellings to be |
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sold or leased to individuals or families earning not more than 60 |
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percent of the area median income; or |
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(B) a new multifamily housing project consisting |
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of 150 or more dwelling units to be rented to individuals or |
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families earning not more than 60 percent of the area median income; |
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or |
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(2) in a rural area: |
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(A) 10 or more new single-family dwellings to be |
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sold or leased to individuals or families earning not more than 60 |
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percent of the area median income; or |
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(B) a new multifamily housing project consisting |
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of 60 or more dwelling units to be rented to individuals or families |
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earning not more than 60 percent of the area median income. |
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(c) Property may not be exempted from taxation under this |
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section after the third anniversary of the date the person acquires |
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the property. |
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(d) The chief appraiser of the appraisal district in which |
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property exempted from taxation under this section is located shall |
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determine the market value of the property each tax year and shall |
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record that value in the appraisal records for that tax year. |
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(e) If the person who owns property exempted from taxation |
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under this section sells, leases, or rents any part of the property |
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to an individual or family who does not satisfy the applicable |
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eligibility requirements prescribed by Subsection (b)(1) or (2), a |
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penalty is imposed on the property equal to the amount of the taxes |
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that would have been imposed on the property in each tax year that |
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the property was exempted from taxation, plus interest at an annual |
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rate of seven percent calculated from the dates on which the taxes |
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would have become due. |
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(f) If the penalty prescribed by Subsection (e) is imposed |
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on property because the property is sold to a person who does not |
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satisfy the applicable eligibility requirements of Subsection |
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(b)(1)(A) or (2)(A), the person who received the exemption under |
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this section for the property and the purchaser of the property are |
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jointly and severally liable for the penalty and interest. A tax |
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lien in favor of the school district for which the penalty is |
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imposed attaches to the property to secure payment of the penalty |
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and interest. |
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(g) The chief appraiser shall make an entry in the appraisal |
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records for the property against which a penalty is imposed under |
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Subsection (e) and shall deliver written notice of the imposition |
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of the penalty and interest to the persons who are jointly and |
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severally liable for that penalty and interest. |
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SECTION 2. Section 11.436(a), Tax Code, is amended to read |
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as follows: |
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(a) A person who [An organization that] acquires property |
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that qualifies for an exemption under Section 11.181(a), [or] |
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11.1825, or 11.1828 may apply for the exemption for the year of |
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acquisition not later than the 30th day after the date the person |
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[organization] acquires the property, and the deadline provided by |
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Section 11.43(d) does not apply to the application for that year. |
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SECTION 3. The heading to Section 26.111, Tax Code, is |
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amended to read as follows: |
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Sec. 26.111. PRORATING TAXES--ACQUISITION BY PERSON FOR |
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LOW-INCOME AND MODERATE-INCOME HOUSING PROJECTS [CHARITABLE
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ORGANIZATION]. |
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SECTION 4. Section 26.111(a), Tax Code, is amended to read |
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as follows: |
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(a) If a person [an organization] acquires taxable property |
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that qualifies for and is granted an exemption under Section |
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11.181(a), [or] 11.182(a), or 11.1828 for the year in which the |
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property was acquired, the amount of tax due on the property for |
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that year is calculated by multiplying the amount of taxes imposed |
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on the property for the entire year as provided by Section 26.09 by |
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a fraction, the denominator of which is 365 and the numerator of |
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which is the number of days in that year before the date the person |
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[charitable organization] acquired the property. |
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SECTION 5. This Act applies only to an ad valorem tax year |
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that begins on or after the effective date of this Act. |
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SECTION 6. This Act takes effect January 1, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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Regular Session, 2017, authorizing the legislature to exempt from |
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ad valorem taxation by one or more political subdivisions of this |
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state property located near a public school that is owned for the |
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purpose of building low-income or moderate-income housing is |
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approved by the voters. If that amendment is not approved by the |
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voters, this Act has no effect. |