Texas Senate Bill SB193

Texas 2013 - 83rd Regular

Caption

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

Impact

The legislative intent behind SB193 is to bolster support for low-income housing initiatives. By facilitating a tax exemption process, the bill encourages organizations to construct or maintain housing projects aimed at lower-income populations. This could lead to increased investment in affordable housing, potentially addressing the critical housing shortages faced by many communities in Texas. As property taxes can represent a significant expense, exemptions may help these organizations allocate more resources toward housing development and maintenance.

Summary

Senate Bill 193 aims to amend the Texas Tax Code to provide property tax exemptions for properties utilized to offer low-income and moderate-income housing. The bill updates the requirements for organizations that seek to obtain such exemptions, mandating that they undergo annual independent audits. These audits are intended to ensure that the organizations are not only financially sound but also in compliance with the exemption terms. The primary focus of SB193 is to increase the accessibility of affordable housing within the state by alleviating some of the financial burdens through tax relief.

Contention

While the primary aim of SB193 is to promote affordable housing, there are potential points of contention. Critics may argue that the requirement for independent audits could place additional financial burdens on smaller organizations, which may struggle with compliance costs. Additionally, there may be concerns regarding the effectiveness of tax exemptions in actually delivering affordable housing solutions. Some stakeholders might highlight the need for a broader range of support mechanisms beyond tax relief to truly address housing accessibility issues.