The bill would establish that certain tax exemptions would not apply to taxes imposed on a housing authority owned multifamily residential development by a district that provides water, sewer, or drainage service to the development, unless the applicable authority has entered into a written agreement with the district to make a payment to the district in lieu of taxation. This provision applies only to a conservation or reclamation district or emergency services district.
The bill would limit the area of operation of a municipal housing authority to the territorial boundaries of the municipality for which it was created. The bill would further provide a municipal housing authority's housing project outside the territorial boundaries requires an adopted resolution by each affected political subdivision's governing body.
The bill could reduce the number of projects that would receive a property tax exemption and increase school district property value relative to current law. Under provisions of the Education Code, the school district tax revenue gain results in a savings to the state. The amount of any increase in taxable value and savings to the state through the operation of the school finance formulas cannot be estimated.
The bill would redefine the territorial boundaries where municipal housing authorities could locate housing projects. It would also provide that the tax exemption would not apply to taxes imposed on a multifamily residential development by certain conservation, reclamation or emergency services districts unless there is a written agreement to make a specified payment to the district in lieu of taxation.
The bill could reduce the number of projects that would receive a property tax exemption and increase taxable property value relative to current law, however, the amount of any increase in taxable property value cannot be determined.