LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 30, 2011 TO: Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB402 by West (Relating to community land trusts. ), Committee Report 1st House, Substituted No fiscal implication to the State is anticipated. The bill would add Chapter 373B to Subtitle A, Title 12, Local Government Code, to authorize the governing body of a municipality or county by ordinance or order to create or designate one or more community land trusts, including a housing finance corporation established under Chapter 394 or a land trust operated by a community housing development organization certified by the municipality or county, to operate in the municipality or county. Provisions of the bill stipulate the operations and procedures of the land trust. The bill would amend the Tax Code to include that an exemption under Section 11.1827 of the new chapter, once allowed, would not need to be claimed in subsequent years and would apply to the property until it changes ownership or the person's qualifications for the exemption change. A community land trust would be entitled to an exemption if the trust met certain criteria and engages exclusively in the sale or lease of housing and related activities, including the development of low-income and moderate-income housing. The bill would require the chief appraiser to take into account the extent to which the use and limitation of the property reduces the market value. The provisions of the bill would apply only to an ad valorem tax imposed for a tax year beginning on or after the effective date of the bill, which would be January 1, 2012. Local Government Impact There could be a fiscal impact to a municipality or a county that created or designated community land trusts, but the amounts would vary depending on the number of property tax exemptions granted and the value of the optional exemptions. It is assumed that a municipality or a county would create or designate community land trusts only if sufficient funds were available or it would not result in a negative fiscal impact. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, KKR, TP
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 30, 2011
TO: Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB402 by West (Relating to community land trusts. ), Committee Report 1st House, Substituted
TO: Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB402 by West (Relating to community land trusts. ), Committee Report 1st House, Substituted
Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB402 by West (Relating to community land trusts. ), Committee Report 1st House, Substituted
SB402 by West (Relating to community land trusts. ), Committee Report 1st House, Substituted
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would add Chapter 373B to Subtitle A, Title 12, Local Government Code, to authorize the governing body of a municipality or county by ordinance or order to create or designate one or more community land trusts, including a housing finance corporation established under Chapter 394 or a land trust operated by a community housing development organization certified by the municipality or county, to operate in the municipality or county. Provisions of the bill stipulate the operations and procedures of the land trust. The bill would amend the Tax Code to include that an exemption under Section 11.1827 of the new chapter, once allowed, would not need to be claimed in subsequent years and would apply to the property until it changes ownership or the person's qualifications for the exemption change. A community land trust would be entitled to an exemption if the trust met certain criteria and engages exclusively in the sale or lease of housing and related activities, including the development of low-income and moderate-income housing. The bill would require the chief appraiser to take into account the extent to which the use and limitation of the property reduces the market value. The provisions of the bill would apply only to an ad valorem tax imposed for a tax year beginning on or after the effective date of the bill, which would be January 1, 2012.
Local Government Impact
There could be a fiscal impact to a municipality or a county that created or designated community land trusts, but the amounts would vary depending on the number of property tax exemptions granted and the value of the optional exemptions. It is assumed that a municipality or a county would create or designate community land trusts only if sufficient funds were available or it would not result in a negative fiscal impact.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KKR, TP
JOB, KKR, TP