Texas House Bill HB2663

Texas 2015 - 84th Regular

Caption

Relating to the treatment for ad valorem tax purposes of real property used for certain low-income or moderate-income housing.

Impact

The changes introduced by HB2663 aim to make housing more affordable by reducing the tax burden on properties designated for low- and moderate-income tenants. This could incentivize more developers and landlords to invest in or maintain such housing, potentially increasing the supply of affordable residences within Texas. Furthermore, public notice requirements concerning the capitalization rates used in property appraisals are proposed, ensuring transparency and providing essential information to both property owners and prospective tenants.

Summary

House Bill 2663 focuses on the treatment of real property used for certain low-income or moderate-income housing regarding ad valorem tax purposes. The bill proposes amendments to Sections 11.1825 and 23.215 of the Tax Code, specifically altering how properties in this category are appraised for tax purposes. One of the major changes is that the bill establishes a 100 percent exemption from taxation for the appraised value of qualifying properties, promoting the development and preservation of affordable housing across the state.

Conclusion

If enacted, HB2663 will significantly influence property tax policies and housing affordability in Texas. By revising appraisal methods and providing tax exemptions, the bill aims to support lower-income households and promote equitable housing solutions. As discussions surrounding this legislation proceed, stakeholders from various sectors, including housing advocates and local governments, will need to engage to strike a balance between supporting affordable housing and maintaining fiscal responsibility.

Contention

While supporters of HB2663 argue that providing tax exemptions for low- and moderate-income housing facilitates the creation of affordable units, opponents may highlight concerns around the fiscal impact on local governments, which might face budgetary issues as a result of decreased tax revenues. The bill's implementation could also spark debates about whether the current definitions of 'low-income' and 'moderate-income' housing are sufficiently inclusive or adequately address the needs of diverse communities.