| 1 | 1 | | By: West S.B. No. 193 |
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| 2 | 2 | | (Otto) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the exemption from ad valorem taxation of certain |
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| 8 | 8 | | property used to provide low-income and moderate-income housing. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subsection (g), Section 11.182, Tax Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (g) To receive an exemption under Subsection (b) or (f), an |
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| 13 | 13 | | organization must annually: |
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| 14 | 14 | | (1) have an audit prepared by an independent auditor |
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| 15 | 15 | | that includes[. The audit must include] a detailed report on the |
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| 16 | 16 | | organization's sources and uses of funds; and |
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| 17 | 17 | | (2) deliver a[. A] copy of the audit [must be |
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| 18 | 18 | | delivered] to the Texas Department of Housing and Community Affairs |
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| 19 | 19 | | and to the chief appraiser of the appraisal district in which the |
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| 20 | 20 | | property subject to the exemption is located. |
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| 21 | 21 | | SECTION 2. Subsections (b) and (c), Section 11.1826, Tax |
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| 22 | 22 | | Code, are amended to read as follows: |
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| 23 | 23 | | (b) Property may not be exempted under Section 11.1825 for a |
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| 24 | 24 | | tax year unless the organization owning or controlling the owner of |
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| 25 | 25 | | the property: |
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| 26 | 26 | | (1) has an audit prepared by an independent auditor |
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| 27 | 27 | | covering the organization's most recent fiscal year that: |
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| 28 | 28 | | (A) is[. The audit must be] conducted in |
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| 29 | 29 | | accordance with generally accepted accounting principles; and |
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| 30 | 30 | | (B) includes[. The audit must include] an |
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| 31 | 31 | | opinion on whether: |
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| 32 | 32 | | (i) [(1)] the financial statements of the |
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| 33 | 33 | | organization present fairly, in all material respects and in |
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| 34 | 34 | | conformity with generally accepted accounting principles, the |
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| 35 | 35 | | financial position, changes in net assets, and cash flows of the |
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| 36 | 36 | | organization; and |
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| 37 | 37 | | (ii) [(2)] the organization has complied |
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| 38 | 38 | | with all of the terms and conditions of the exemption under Section |
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| 39 | 39 | | 11.1825; and |
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| 40 | 40 | | (2) delivers a copy of the audit in accordance with |
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| 41 | 41 | | Subsection (c). |
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| 42 | 42 | | (c) Not later than the 180th day after the last day of the |
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| 43 | 43 | | organization's most recent fiscal year, the organization must |
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| 44 | 44 | | deliver a copy of the audit to the department and the chief |
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| 45 | 45 | | appraiser of the appraisal district in which the property is |
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| 46 | 46 | | located. The chief appraiser may extend the deadline for good cause |
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| 47 | 47 | | shown. |
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| 48 | 48 | | SECTION 3. This Act takes effect January 1, 2014. |
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