LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 13, 2009 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2628 by Rodriguez (Relating to an exemption from ad valorem taxation of certain property owned by a charitable organization and used in providing housing and related services to certain individuals.), As Engrossed To the extent that improvements are exempted under the bill, there would be a cost to the state through the operation of the school funding formulas. Section 11.18(d) of the Tax Code lists several charitable functions, one or more of which a charitable organization must exclusively perform to qualify for a property tax exemption. The bill would add the provision of housing and related services to unaccompanied disabled homeless persons who meet certain conditions to the list of charitable functions required of a charitable organization for receiving a property tax exemption. The bill would also limit any exemption based on the new authorized charitable function to improvements owned by a charitable organization that has been in existence for at least ten years, if the improvements are used to provide housing and related services and are located on a single campus owned by a city with a population of more than 600,000 and less than 700,000. To the extent that improvements are exempted under the bill, there would be a cost to taxing units and to the state through the operation of the school funding formulas. Because no information is available regarding the number or value of improvements that would qualify for exemption under the bill, the fiscal impact cannot be estimated. The bill would be effective on January 1, 2010. Local Government Impact To the extent that improvements are exempted under the bill there would be a cost to local taxing units. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 13, 2009
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2628 by Rodriguez (Relating to an exemption from ad valorem taxation of certain property owned by a charitable organization and used in providing housing and related services to certain individuals.), As Engrossed
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB2628 by Rodriguez (Relating to an exemption from ad valorem taxation of certain property owned by a charitable organization and used in providing housing and related services to certain individuals.), As Engrossed
Honorable Steve Ogden, Chair, Senate Committee on Finance
Honorable Steve Ogden, Chair, Senate Committee on Finance
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB2628 by Rodriguez (Relating to an exemption from ad valorem taxation of certain property owned by a charitable organization and used in providing housing and related services to certain individuals.), As Engrossed
HB2628 by Rodriguez (Relating to an exemption from ad valorem taxation of certain property owned by a charitable organization and used in providing housing and related services to certain individuals.), As Engrossed
To the extent that improvements are exempted under the bill, there would be a cost to the state through the operation of the school funding formulas.
To the extent that improvements are exempted under the bill, there would be a cost to the state through the operation of the school funding formulas.
Section 11.18(d) of the Tax Code lists several charitable functions, one or more of which a charitable organization must exclusively perform to qualify for a property tax exemption. The bill would add the provision of housing and related services to unaccompanied disabled homeless persons who meet certain conditions to the list of charitable functions required of a charitable organization for receiving a property tax exemption. The bill would also limit any exemption based on the new authorized charitable function to improvements owned by a charitable organization that has been in existence for at least ten years, if the improvements are used to provide housing and related services and are located on a single campus owned by a city with a population of more than 600,000 and less than 700,000. To the extent that improvements are exempted under the bill, there would be a cost to taxing units and to the state through the operation of the school funding formulas. Because no information is available regarding the number or value of improvements that would qualify for exemption under the bill, the fiscal impact cannot be estimated. The bill would be effective on January 1, 2010.
Section 11.18(d) of the Tax Code lists several charitable functions, one or more of which a charitable organization must exclusively perform to qualify for a property tax exemption. The bill would add the provision of housing and related services to unaccompanied disabled homeless persons who meet certain conditions to the list of charitable functions required of a charitable organization for receiving a property tax exemption.
The bill would also limit any exemption based on the new authorized charitable function to improvements owned by a charitable organization that has been in existence for at least ten years, if the improvements are used to provide housing and related services and are located on a single campus owned by a city with a population of more than 600,000 and less than 700,000.
To the extent that improvements are exempted under the bill, there would be a cost to taxing units and to the state through the operation of the school funding formulas. Because no information is available regarding the number or value of improvements that would qualify for exemption under the bill, the fiscal impact cannot be estimated.
The bill would be effective on January 1, 2010.
Local Government Impact
To the extent that improvements are exempted under the bill there would be a cost to local taxing units.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, SJS
JOB, MN, SD, SJS