Texas 2009 - 81st Regular

Texas Senate Bill SB744 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R6792 SMH-F
2	2	By: Wentworth S.B. No. 744
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to qualifications for an ad valorem tax exemption for
8	8	property used to provide low-income or moderate-income housing.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 11.182, Tax Code, is amended by amending
11	11	Subsections (b), (e), (h), (j), and (k) and adding Subsections
12	12	(b-1) and (b-2) to read as follows:
13	13	(b) An organization is entitled to an exemption from
14	14	taxation of improved or unimproved real property it owns if the
15	15	organization:
16	16	(1) is organized as a community housing development
17	17	organization;
18	18	(2) meets the requirements of a charitable
19	19	organization provided by Sections 11.18(e) and (f);
20	20	(3) owns the property for the purpose of building or
21	21	repairing housing on the property to sell without profit to a
22	22	low-income or moderate-income individual or family satisfying the
23	23	organization's eligibility requirements or to rent without profit
24	24	to such an individual or family; and
25	25	(4) engages [exclusively] in the building, repair, and
26	26	sale or rental of housing as described by Subdivision (3) and
27	27	related activities.
28	28	(b-1) Notwithstanding Subsections (b)(1) and (2), an owner
29	29	of improved or unimproved real property that is not an organization
30	30	described by those subdivisions is entitled to an exemption from
31	31	taxation of the property under Subsection (b) if the owner
32	32	otherwise qualifies for the exemption and the owner is:
33	33	(1) a limited partnership 100 percent of the interest
34	34	of the general partner in which is owned or controlled by an
35	35	organization described by Subsections (b)(1) and (2); or
36	36	(2) an entity 100 percent of the interest in which is
37	37	owned or controlled by an organization described by Subsections
38	38	(b)(1) and (2).
39	39	(b-2) A reference in this section to an organization
40	40	includes a limited partnership or other entity described by
41	41	Subsection (b-1).
42	42	(e) In addition to meeting the applicable requirements of
43	43	Subsections (b) and (c), to receive an exemption under Subsection
44	44	(b) for improved real property that is [includes a housing project
45	45	constructed after December 31, 2001, and] financed with qualified
46	46	501(c)(3) bonds issued under Section 145 of the Internal Revenue
47	47	Code of 1986, tax-exempt private activity bonds subject to volume
48	48	cap, or low-income housing tax credits, the organization must:
49	49	(1) [control 100 percent of the interest in the
50	50	general partner if the project is owned by a limited partnership;
51	51	[(2)] comply with all rules of and laws administered
52	52	by the Texas Department of Housing and Community Affairs applicable
53	53	to community housing development organizations; and
54	54	(2) [(3)] submit annually to the Texas Department of
55	55	Housing and Community Affairs and to the governing body of each
56	56	taxing unit for which the project receives an exemption for the
57	57	housing project evidence demonstrating that the organization spent
58	58	an amount equal to at least 90 percent of the project's cash flow in
59	59	the preceding fiscal year as determined by the audit required by
60	60	Subsection (g), for eligible persons in the county in which the
61	61	property is located, on social, educational, or economic
62	62	development services, capital improvement projects, or rent
63	63	reduction.
64	64	(h) Subsections (d) and (e)(2) [(e)(3)] do not apply to
65	65	property owned by an organization if:
66	66	(1) the entity that provided the financing for the
67	67	acquisition or construction of the property:
68	68	(A) requires the organization to make payments in
69	69	lieu of taxes to the school district in which the property is
70	70	located; or
71	71	(B) restricts the amount of rent the organization
72	72	may charge for dwelling units on the property; or
73	73	(2) the organization has entered into an agreement
74	74	with each taxing unit for which the property receives an exemption
75	75	to spend in each tax year for the purposes provided by Subsection
76	76	(d) or (e)(2) [(e)(3)] an amount equal to the total amount of taxes
77	77	imposed on the property in the tax year preceding the year in which
78	78	the organization acquired the property.
79	79	(j) An organization may not receive an exemption under
80	80	Subsection (b) or (f) for property for a tax year unless the
81	81	organization applied for or received an exemption under that
82	82	subsection for the property for any part of the 2003 tax year.
83	83	(k) Notwithstanding Subsection (j) of this section and
84	84	Sections 11.43(a) and (c), an exemption under Subsection (b) or (f)
85	85	does not terminate because of a change in the ownership of the
86	86	property if the property is sold at a foreclosure sale and, not
87	87	later than the 30th day after the date of the sale, the owner of the
88	88	property submits to the chief appraiser evidence that the property
89	89	is owned by an organization that meets the requirements of
90	90	Subsections (b)(1), (2), and (4) or is owned by a limited
91	91	partnership described by Subsection (b-1)(1) or an entity described
92	92	by Subsection (b-1)(2) that meets the requirements of Subsection
93	93	(b)(4). If the owner of the property submits the evidence required
94	94	by this subsection, the exemption continues to apply to the
95	95	property for the remainder of the current tax year and for
96	96	subsequent tax years until the owner ceases to qualify the property
97	97	for the exemption. This subsection does not prohibit the chief
98	98	appraiser from requiring the owner to file a new application to
99	99	confirm the owner's current qualification for the exemption as
100	100	provided by Section 11.43(c).
101	101	SECTION 2. Sections 11.1825(c) and (t), Tax Code, are
102	102	amended to read as follows:
103	103	(c) Notwithstanding Subsection (b), an owner of real
104	104	property that is not an organization described by that subsection
105	105	is entitled to an exemption from taxation of property under this
106	106	section if the property otherwise qualifies for the exemption and
107	107	the owner is:
108	108	(1) a limited partnership of which an organization
109	109	that meets the requirements of Subsection (b) controls 100 percent
110	110	of the general partner interest; [or]
111	111	(2) an entity the parent of which is an organization
112	112	that meets the requirements of Subsection (b); or
113	113	(3) an entity the parent of which is controlled by an
114	114	organization that meets the requirements of Subsection (b).
115	115	(t) Notwithstanding Section 11.43(c), an exemption under
116	116	this section does not terminate because of a change in ownership of
117	117	the property if:
118	118	(1) the property is foreclosed on for any reason and,
119	119	not later than the 30th day after the date of the foreclosure sale,
120	120	the owner of the property submits to the chief appraiser evidence
121	121	that the property is owned by:
122	122	(A) an organization that meets the requirements
123	123	of Subsection (b); or
124	124	(B) an entity that meets the requirements of
125	125	Subsections (c) and (d); or
126	126	(2) in the case of property owned by an entity
127	127	described by Subsections (c) and (d), the organization meeting the
128	128	requirements of Subsection (b) that controls the general partner
129	129	interest of, [or] is the parent of, or controls the parent of the
130	130	entity as described by Subsection (c) ceases to serve in that
131	131	capacity and, not later than the 30th day after the date the
132	132	cessation occurs, the owner of the property submits evidence to the
133	133	chief appraiser that the organization has been succeeded in that
134	134	capacity by another organization that meets the requirements of
135	135	Subsection (b).
136	136	SECTION 3. This Act applies only to ad valorem taxes imposed
137	137	for a tax year beginning on or after the effective date of this Act.
138	138	SECTION 4. This Act takes effect January 1, 2010.