Texas Senate Bill SB1591

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/14/09

Caption

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.