Texas Senate Bill SB1527

Texas 2011 - 82nd Regular

• Introduced: 3/10/11
• Refer: 3/22/11

Caption

Relating to the monitoring of compliance with low-income and moderate-income housing ad valorem tax exemptions.

Impact

The implementation of SB1527 is expected to update the existing tax code to better facilitate the verification of compliance among housing organizations. This change aims to provide more clarity for entities trying to navigate the requirements for tax exemptions. By clearly defining the evidentiary standards needed for compliance, the bill could promote more efficient processing of tax exemptions thereby encouraging the development of affordable housing projects that qualify under the low-income and moderate-income criteria.

Summary

SB1527 seeks to enhance the monitoring framework for compliance relating to low-income and moderate-income housing ad valorem tax exemptions in Texas. The bill proposes an amendment to Section 11.1826 of the Tax Code by adding a subsection that specifies the criteria under which organizations can demonstrate compliance for these tax exemptions. Notably, it establishes that an opinion from an independent auditor or a determination from the IRS can serve as prima facie evidence of compliance, thereby streamlining the accountability process for organizations seeking these tax benefits.

Sentiment

Overall, there appears to be a favorable sentiment towards SB1527 among lawmakers and housing advocates. Supporters argue that improving compliance monitoring structures is vital to ensure that tax exemptions intended for affordable housing are not being misused. Proponents underscore the necessity of accountability measures which are critical for maintaining the integrity of housing assistance programs. However, there may be some concerns within communities about the additional oversight and whether it will impose undue burdens on small organizations seeking these benefits.

Contention

While SB1527 has garnered general support, some stakeholders might express concerns about the implications of increased oversight. Potential contention could arise regarding the balance between ensuring compliance and allowing organizations to operate without excessive bureaucratic constraints. Critics may argue that the verification process could complicate existing systems for smaller housing organizations that may lack the resources to consistently meet the proposed audit requirements or documentation standards.