Texas House Bill HB1548

Texas 2017 - 85th Regular

Caption

Relating to the exemption from ad valorem taxation by a school district of certain property used to build low-income or moderate-income housing.

Impact

If enacted, HB1548 is expected to facilitate the building of affordable housing in close proximity to schools by reducing the financial burden of property taxes for developers. This move aligns with broader state efforts to enhance affordable housing options and could lead to increased availability of housing for low-income families. The exemption would remain in effect only for three years post-acquisition, after which regular taxation would apply. The measure underscores the importance of accessibility to education, aiming to promote residency near educational institutions.

Summary

House Bill 1548 aims to amend the Texas Tax Code to provide a specific exemption from ad valorem taxation for certain properties utilized to construct low-income or moderate-income housing near schools. The proposed legislation outlines eligibility criteria for property owners seeking this exemption, specifically requiring that housing units be rented or sold to families earning no more than 60% of the area median income. The bill establishes different thresholds for property development based on whether the location is in an urban or rural area, reflecting the varying housing needs in different communities.

Contention

However, the bill has sparked discussions regarding potential implications for local tax revenues, particularly for school districts that may depend on such funding. Critics argue that while the intention to promote affordable housing is commendable, the bill might negatively affect school district budgets and their capacity to finance educational programs. Furthermore, there are concerns that the criteria for the tax exemption could be exploited, leading to situations where properties do not adequately serve the targeted demographic, potentially undermining the bill's objectives.