Relating to the length of time certain property acquired by a charitable organization to provide low-income housing may be exempted from ad valorem taxation.
Impact
If enacted, SB1591 would have significant implications for charitable organizations involved in low-income housing initiatives. By extending the period of tax exemption, it is expected to provide financial relief and support for these entities, potentially enabling them to allocate more resources towards the development and maintenance of affordable housing. This change could encourage more charitable organizations to invest in low-income housing, thereby impacting the availability of such accommodations in Texas.
Summary
Senate Bill 1591 proposes a change to the Texas Tax Code regarding property tax exemptions for properties acquired by charitable organizations to provide low-income housing. The bill specifically seeks to extend the length of time such properties can be exempt from ad valorem taxation. Under the current law, properties can only be exempt if they are held by these organizations for up to three years. The bill aims to amend this to allow exemption for a period of five years after acquisition.
Contention
There may be contention related to the bill's impact on state tax revenues. Critics could argue that extending tax exemptions for longer periods might result in reduced funding for local governments that rely on property taxes for their budget. Proponents, on the other hand, would likely point out that the long-term benefits of providing low-income housing outweigh the short-term reductions in tax revenue. Debates may arise concerning the balance between supporting charitable housing efforts and maintaining adequate funding for other public services.
Identical
Relating to the exemption from ad valorem taxation of certain property acquired to provide low-income housing or used for charitable purposes.
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 property owned by a charitable organization that provides services related to the placement of a child in a foster or adoptive home.
Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.
Relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.