Relating to the exemption from ad valorem taxation of certain property used to provide low-income or moderate-income housing.
Impact
The legislation is poised to significantly impact state laws related to property taxation, particularly for affordable housing projects. By establishing a framework for tax exemptions, the bill encourages property owners and developers to invest in low-income housing initiatives. Its implications could lead to a reduction in tax revenue for local governments, but supporters argue that the long-term benefits of increased affordable housing availability will outweigh fiscal concerns.
Summary
House Bill 3064 addresses ad valorem taxation exemptions for properties utilized to provide low-income or moderate-income housing. It stipulates that property owners can receive a 100% exemption from property taxes, provided they meet specific criteria, including being classified as a 501(c)(3) exempt entity and the property being previously owned by a local government corporation for housing development. This bill aims to incentivize the creation and maintenance of affordable housing within the state, which is a crucial issue in Texas given the increasing demand for low-income housing solutions.
Sentiment
The sentiment around HB 3064 appears to be generally favorable among advocates for affordable housing, who view it as a crucial step towards addressing housing shortages. However, there are apprehensions among local government officials regarding potential losses in tax revenue. The debate centers around finding the balance between providing necessary housing solutions and maintaining fiscal health for municipalities.
Contention
Notably, points of contention arise regarding the qualifications for the tax exemption, specifically whether the revenue loss will adversely affect local services. Opponents of the bill may argue that while the intent is noble, the practical implications of tax exemption laws could hinder local governments' ability to fund essential services. This tension highlights the ongoing struggle between the need for affordable housing and the financial realities faced by local jurisdictions.
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 a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.