Texas House Bill HB3552

Texas 2011 - 82nd Regular

• Introduced: 3/11/11
• Refer: 3/22/11

Caption

Relating to the exemption from ad valorem taxation of property used to provide low-income or moderate-income housing.

Impact

If enacted, HB3552 would modify existing tax code regulations to clarify the definition of organizations eligible for property tax exemptions. It establishes that properties owned by organizations engaged primarily in charitable functions can be exempt from ad valorem taxes as long as they meet statutory obligations. Particularly, these organizations must demonstrate that they own the property for the purpose of building, repairing, and renting or selling housing to low-income or moderate-income families without profit. This could lead to an increase in affordable housing options available to citizens across the state.

Summary

House Bill 3552 aims to provide an exemption from ad valorem taxation for properties that are utilized to deliver low-income or moderate-income housing in Texas. This legislation seeks to encourage the development and preservation of affordable housing by alleviating the financial burden of property taxes on organizations dedicated to building or renovating housing for qualified individuals and families. The bill primarily targets community housing development organizations, establishing specific criteria that must be met for property to qualify for this tax relief.

Sentiment

The sentiment surrounding HB3552 is generally positive among supporters who advocate for greater availability of affordable housing. Proponents argue that removing property tax burdens will enable community organizations to allocate more resources toward housing production and rehabilitation efforts. However, there may also be concerns from local governments regarding potential reductions in tax revenues, which could challenge their financial operations. Overall, the discussions reflect a balance between fostering social welfare through housing outreach and preserving the fiscal responsibility of local entities.

Contention

Notable points of contention include the specifics of the eligibility criteria for organizations seeking tax exemption and concerns about the potential for misuse of the exemptions or insufficient oversight of the organizations. Critics argue that the bill could allow loopholes that could be exploited by larger entities, potentially undermining the intended benefits for truly community-focused organizations. Additionally, there is discourse around the implications of reduced tax revenue on local services, which may require adjustment or alternative funding solutions to mitigate any adverse impacts.