Texas Senate Bill SB613

Texas 2021 - 87th Regular

Caption

Relating to an exemption from ad valorem taxation of real property owned by a charitable organization for the purpose of renting the property at below-market rates to low-income and moderate-income households.

Impact

The impact of SB613 is significant for housing policy in Texas, particularly in municipalities located on the Texas-Mexico border with populations exceeding 200,000 but under 300,000. By exempting properties rented below market rates, the bill promotes affordable housing options and aims to assist low-income families, potentially mitigating the housing crisis in these communities. This could facilitate a more stable housing situation for vulnerable populations, thereby enhancing their quality of life.

Summary

Senate Bill 613 (SB613) relates to an exemption from ad valorem taxation for real property owned by charitable organizations aimed at renting properties at below-market rates to low-income and moderate-income households. The bill amends Section 11.18 of the Texas Tax Code, adding new provisions for charitable organizations that provide rental housing, effectively broadening the types of entities eligible for property tax exemptions if they serve specific income demographics.

Contention

Despite its benevolent intentions, the bill may encounter contention regarding its implications for local economies and existing housing policies. Supporters argue that tax breaks for charitable organizations will incentivize the development and maintenance of affordable housing, while critics may argue that such exemptions could reduce local tax revenues needed for public services. Furthermore, there could be concerns surrounding the criteria for what constitutes low or moderate income and potential misuse by organizations that do not fully align with the bill's charitable intent.