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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 of property |
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owned by a community land trust or housing finance corporation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.1827, Tax Code, is amended by |
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amending Subsections (b) and (d) and adding Subsection (g) to read |
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as follows: |
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(b) Subject to Subsection (g), in [In] addition to any other |
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exemption to which the trust may be entitled, a community land trust |
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is entitled to an exemption from taxation by a taxing unit of land |
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owned by the trust, together with the housing units located on the |
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land if they are owned by the trust, if: |
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(1) the trust: |
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(A) meets the requirements of a charitable |
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organization provided by Sections 11.18(e) and (f); |
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(B) owns the land for the purpose of leasing the |
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land and selling or leasing the housing units located on the land as |
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provided by Chapter 373B, Local Government Code; and |
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(C) engages exclusively in the sale or lease of |
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housing as described by Paragraph (B) and related activities, |
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except that the trust may also engage in the development of |
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low-income and moderate-income housing; and |
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(2) the exemption is adopted by the governing body of |
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the taxing unit before July 1 in the manner provided by law for |
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official action by the body. |
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(d) Subject to Subsection (g), a [A] community land trust |
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entitled to an exemption from taxation by a taxing unit under |
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Subsection (b) is also entitled to an exemption from taxation by the |
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taxing unit of any real or tangible personal property the trust owns |
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and uses in the administration of its acquisition, construction, |
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repair, sale, or leasing of property. To qualify for an exemption |
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under this subsection, property must be used exclusively by the |
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trust, except that another person may use the property for |
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activities incidental to the trust's use that benefit the |
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beneficiaries of the trust. |
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(g) A community land trust may receive an exemption under |
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this section for property owned by the trust only if the property is |
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located: |
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(1) in the municipality or county that created or |
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designated the trust; or |
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(2) if the commissioners court of the county agrees in |
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the manner provided by law for official action to allow the |
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exemption, in a county adjacent to: |
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(A) the county that created or designated the |
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trust; or |
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(B) the county in which the municipality that |
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created or designated the trust is located. |
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SECTION 2. Section 394.905, Local Government Code, is |
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amended to read as follows: |
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Sec. 394.905. EXEMPTION FROM TAXATION. (a) Subject to |
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Subsection (c), the [The] housing finance corporation, all property |
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owned by it, the income from the property, all bonds issued by it, |
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the income from the bonds, and the transfer of the bonds are exempt, |
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as public property used for public purposes, from license fees, |
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recording fees, and all other taxes imposed by this state or any |
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political subdivision of this state. |
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(b) The corporation is exempt from the franchise tax imposed |
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by Chapter 171, Tax Code, only if the corporation is exempted by |
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that chapter. |
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(c) The corporation may receive an exemption under this |
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section for property owned by the corporation only if the property |
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is located: |
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(1) in the municipality or county that sponsored the |
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corporation; or |
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(2) if the commissioners court of the county agrees in |
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the manner provided by law for official action to allow the |
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exemption, in a county adjacent to: |
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(A) the county that sponsored the corporation; or |
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(B) the county in which the municipality that |
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sponsored the corporation is located. |
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SECTION 3. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2026. |