82R9328 ATP-D
By: Hinojosa S.B. No. 1528
A BILL TO BE ENTITLED
AN ACT
relating to taxation of property owned or controlled by a public
facility corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 303.042, Local Government Code, is
amended by amending Subsections (c) and (d) and adding Subsections
(c-1), (c-2), (f), and (g) to read as follows:
(c) A corporation is engaged exclusively in the performance
of charitable functions and the corporation and property owned by
the corporation are [is] exempt from taxation by this state or a
municipality or other political subdivision of this state. Bonds
issued by a corporation under this chapter, a transfer of the bonds,
interest on the bonds, and a profit from the sale or exchange of the
bonds are exempt from taxation by this state or a municipality or
other political subdivision of this state.
(c-1) The legal owner of property that is not a corporation
created under this chapter is exempt from property taxation with
respect to that property if:
(1) the corporation owns 100 percent of the legal
owner of the property; or
(2) the legal owner of the property is exclusively
controlled by the corporation and:
(A) is organized under the laws of this state;
(B) has its principal place of business in this
state; and
(C) has equitable title to the property.
(c-2) Property described by Subsection (c) is exempt from
taxation under that subsection if the property is owned by a tax
credit partnership or limited liability company and the general
partner or member, as applicable, is or is controlled by a public
facility corporation holding equitable title to the property under
an option to acquire the property on terms negotiated between the
parties to the option agreement.
(d) An exemption under this section for a multifamily
residential development which is owned by a public facility
corporation created by a housing authority under this chapter and
which does not have at least 20 percent of its units reserved for
public housing units, applies only if:
(1) the housing authority holds a public hearing, at a
regular meeting of the authority's governing body, to approve the
development; and
(2) at least 50 percent of the units in the multifamily
residential development are reserved for occupancy by individuals
and families earning less than 60 [80] percent of the area median
family income.
(f) For purposes of this section, the following are
considered to own property:
(1) persons with legal title to property; and
(2) persons with equitable title to property,
established by the present right to compel the conveyance of legal
title to the property in accordance with the law of this state,
including by having an option to acquire the property.
(g) For purposes of this section, a person is considered to
control another if the person has the power to manage, direct,
superintend, restrict, regulate, govern, administer, or oversee
the other person. A corporation is considered to control a limited
partnership only if the corporation directly or through a wholly
owned subsidiary controls 100 percent of the general partner
interest. A corporation is considered to control a limited
liability company only if the corporation is the sole manager or
managing member of the company.
SECTION 2. This Act takes effect January 1, 2012.