Relating to the ad valorem taxation of property used to provide low-income or moderate-income housing.
Impact
The bill's implementation could yield substantial implications for local and state tax revenues. By expanding tax exemptions for entities providing affordable housing, the legislation aims to incentivize the development and maintenance of such housing units. This change may support local governments in fulfilling their housing obligations while decreasing tax burdens on organizations operating within these parameters. In turn, this could encourage increased participation of nonprofits and related groups in the realm of affordable housing development, potentially alleviating housing shortages in communities across Texas.
Summary
House Bill 2828 proposes amendments related to the ad valorem taxation of properties dedicated to low-income and moderate-income housing. The bill seeks to enhance the exemption criteria for property owned by community housing development organizations. This modification allows both organizations and limited partnerships controlled by such organizations to qualify for tax exemptions when the properties are utilized for building, selling, or renting residences without profit to eligible low and moderate-income individuals or families. Significantly, the amendments are designed to support entities committed to fulfilling community housing needs effectively, facilitating broader access to affordable housing resources.
Contention
Despite its favorable intent, HB 2828 has prompted discussions around the proper balance between tax incentives and potential revenue losses for local governments. Critics of the bill may argue that expanding tax exemptions could constrain local budgets, impacting funding for essential community services. Conversely, proponents may contend that the long-term benefits of bolstering low-income housing availability outweigh the immediate fiscal impacts. Moreover, the nuances of who qualifies for exemptions and the metrics to evaluate this may also face scrutiny, necessitating careful regulatory oversight to ensure the proper use of tax-related incentives.
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.
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.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.