Relating to the ad valorem taxation of property used to provide low-income or moderate-income housing.
Impact
The bill is intended to enhance the availability of affordable housing options by reducing the financial burden on organizations that develop such housing. By confirming tax exemptions, it encourages investment in communities needing affordable housing solutions. As such, it may significantly influence local housing markets by incentivizing the development of properties that might otherwise be unfeasible due to taxes. Furthermore, it aims to ensure that tax benefits are aligned with community needs by imposing conditions related to how organizations must utilize their properties.
Summary
House Bill 3104 proposes amendments to the Tax Code concerning the ad valorem taxation of properties designed for low-income and moderate-income housing. The proposed legislation aims to provide exemptions from taxation for organizations involved in building or managing affordable housing projects for qualified individuals and families. It stipulates specific conditions under which these exemptions can be obtained, including requirements for community housing development organizations and limited partnerships associated with these entities.
Contention
Some points of contention surrounding HB 3104 may include the effectiveness of these tax exemptions in truly aiding low and moderate-income communities versus the potential for abuse of the exemption system by entities not fully dedicated to the intended purpose. Critics could argue that without strict oversight and enforcement of compliance requirements—such as annual audits and reporting on the use of funds—there may be a risk of non-compliance. Additionally, stakeholders may debate the balance between necessary taxation and the need for affordable housing, which could lead to differing opinions on how to amend existing tax codes.
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.