By: Brown H.B. No. 3704
A BILL TO BE ENTITLED
AN ACT
relating to the taxation of political subdivisions of the state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.1825, Tax Code, is amended by adding
Subsection (z) to read as follows:
(z)(1) A community housing development organization
entitled to an exemption from taxation under this section is also
entitled to an exemption from taxation of the buildings and other
real and tangible personal property that are owned by the
organization, and except as provided by Subsection (z)(2) are used
exclusively by the organization in the administration of its
acquisition, building, repair, sale, or rental of property, or by
political subdivisions of the state that:
(a) are eligible for an exemption from taxation under
Chapter 11 of this code, and
(b) are exempt from federal income taxes or have their
revenue exempted from federal income taxes under Section 115 of the
Internal Revenue Code.
(2) Use of property exempt by reason of this subsection by
persons not qualifying under (z)(1) above does not result in the
loss of an exemption authorized by this Subsection (z) if such use
is incidental to or furthers the exempt purposes of the owner or an
organization qualified under (1)(a) and (b) above.
SECTION 2. This Act takes effect September 1, 2011.