Texas House Bill HB3704

Texas 2011 - 82nd Regular

• Out of House Committee: 5/7/11
• Introduced: 3/11/11
• Refer: 3/23/11
• Report Pass: 5/6/11

Caption

Relating to the taxation of political subdivisions of the state.

Impact

This bill significantly impacts the way community housing organizations are taxed in Texas, enabling these entities to operate more effectively without the burden of property taxes on their essential facilities. This change is expected to promote the development and sustainability of housing initiatives aimed at benefiting various communities, particularly those that may face challenges in accessing affordable housing. By relieving these organizations of certain taxes, the state aims to foster an environment where these groups can thrive and offer more substantial housing options.

Summary

House Bill 3704 amends the Texas Tax Code to provide tax exemptions for community housing development organizations and certain political subdivisions of the state. Under the new provisions, these organizations will be exempt from taxation on their buildings and other tangible personal property, provided that such properties are used specifically for the administration of their operations relating to property acquisition, building, repair, sale, or rental. Moreover, the bill clarifies that incidental use of these properties by non-qualifying individuals or entities will not jeopardize the tax exemption, as long as it furthers the exempt purposes set forth in the bill.

Contention

While the provisions within HB 3704 will most likely be welcomed by community housing organizations, there may be concerns regarding the implications of such tax exemptions for local government revenues. Critics could argue that the exemptions may lead to decreased funds for local authorities, which could impact community services that rely on these types of revenues. Nonetheless, advocates of the bill emphasize the long-term benefits of supporting affordable housing initiatives and the societal advantages that come with them.