Relating to liability for the additional tax imposed on land appraised for ad valorem tax purposes as qualified open-space land in the event of a change of use of the land if the land is transferred to a charitable organization for purposes of building housing for sale without profit to a low-income individual or family.
Impact
If enacted, HB2746 would alter existing tax code provisions regarding how properties classified as open-space land are treated when transferred to non-profit entities. By allowing for the waiving of sanctions provided they convert the land appropriately, the bill could incentivize charitable organizations to engage in housing development without the fear of incurring additional tax burdens. This could encourage more non-profits to participate in creating affordable housing solutions for low-income families.
Summary
House Bill 2746 aims to amend tax liabilities associated with land that is appraised as qualified open-space land when it is transferred to charitable organizations for the purpose of building housing for low-income individuals and families. The primary focus of the bill is to provide a tax waiver on penalties that would typically apply if the land undergoes a change of use. This adjustment is intended to facilitate the transition of real property into housing that can be built and sold at cost, thereby addressing housing shortages and supporting low-income communities.
Contention
While supporting the development of low-income housing aligns with various community goals, the expansion of tax exemptions related to land use may raise concerns about the potential loss of tax revenue from these properties. Critics of the bill may argue that it could lead to underfunded local services, as municipalities depend on property taxes for funding essential services. Additionally, some stakeholders may question whether the bill adequately safeguards against potential misuse of the exemptions or if it applies uniformly across various regions. The bill's passage would necessitate discussions regarding its long-term effects on local governance and the housing market.
Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner of the land.
Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner of the land.