84R7206 CJC-D
By: Alvarado H.B. No. 2914
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of property
owned by certain charitable organizations that provide affordable
housing to low-income veterans and their dependents.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.1815 to read as follows:
Sec. 11.1815. CHARITABLE ORGANIZATIONS IMPROVING PROPERTY
TO PROVIDE HOUSING FOR LOW-INCOME VETERANS. (a) An organization is
entitled to an exemption from taxation of improved or unimproved
real property it owns if the organization:
(1) meets the requirements of a charitable
organization provided by Sections 11.18(e) and (f);
(2) owns the property for the purpose of constructing
or rehabilitating housing, regardless of whether the housing
consists of multifamily or single-family dwellings, on the property
to lease without profit to a veteran of the armed services of the
United States who satisfies the organization's low-income and other
eligibility requirements; and
(3) engages exclusively in the construction,
rehabilitation, and lease of housing as described by Subdivision
(2) and related activities.
(b) Property may not receive an exemption under this section
unless all of the dwelling units located on the property are
reserved for individuals or families described by Subsection
(a)(2).
(c) Property may not be exempted under Subsection (a) after
the 10th anniversary of the date the organization acquires the
property. Property that received an exemption under Section
11.1825 and that was subsequently transferred by the organization
described by that section that qualified for the exemption to an
organization described by this section may not be exempted under
Subsection (a) after the 10th anniversary of the date the
transferring organization acquired the property.
(d) An organization entitled to an exemption under
Subsection (a) is also entitled to an exemption from taxation of any
building or tangible personal property the organization owns and
uses in the administration of its acquisition, construction,
rehabilitation, or lease of property. To qualify for an exemption
under this subsection, property must be used exclusively by the
charitable organization, except that another individual or
organization may use the property for activities incidental to the
charitable organization's use that benefit the beneficiaries of the
charitable organization.
(e) For the purposes of Subsection (f), the chief appraiser
of the appraisal district in which the property subject to the
exemption is located shall determine the market value of property
exempted under Subsection (a) and shall record the market value in
the appraisal records.
(f) If the organization that owns improved or unimproved
real property that has been exempted under Subsection (a) leases
the property or any dwelling unit located on the property to a
person other than an individual or family satisfying the
organization's low-income or other eligibility requirements, a
penalty is imposed on the property equal to the amount of the taxes
that would have been imposed on the property in each tax year that
the property was exempted from taxation under Subsection (a), plus
interest at an annual rate of 12 percent calculated from the dates
on which the taxes would have become due. A tax lien in favor of all
taxing units for which the penalty is imposed attaches to the
property to secure payment of the penalty and interest.
(g) The chief appraiser shall make an entry in the appraisal
records for the property against which a penalty under Subsection
(f) is imposed and shall deliver written notice of the imposition of
the penalty and interest to the charitable organization.
SECTION 2. Section 11.1825(p-1), Tax Code, is amended to
read as follows:
(p-1) Notwithstanding the other provisions of this section,
the transfer of property from an organization described by this
section to a nonprofit organization that claims an exemption for
the property under Section 11.181(a) or 11.1815(a) is a proper use
of and purpose for owning the property under this section and does
not affect the eligibility of the property for an exemption under
this section.
SECTION 3. Sections 11.436(a) and (c), Tax Code, are
amended to read as follows:
(a) An organization that acquires property that qualifies
for an exemption under Section 11.181(a), 11.1815(a), or 11.1825
may apply for the exemption for the year of acquisition not later
than the 30th day after the date the organization acquires the
property, and the deadline provided by Section 11.43(d) does not
apply to the application for that year.
(c) To facilitate the financing associated with the
acquisition of a property, an organization, before acquiring the
property, may request from the chief appraiser of the appraisal
district established for the county in which the property is
located a preliminary determination of whether the property would
qualify for an exemption under Section 11.1815 or 11.1825 if
acquired by the organization. The request must include the
information that would be included in an application for an
exemption for the property under Section 11.1815 or 11.1825. Not
later than the 45th day after the date a request is submitted under
this subsection, the chief appraiser shall issue a written
preliminary determination for the property included in the request.
A preliminary determination does not affect the granting of an
exemption under Section 11.1815 or 11.1825.
SECTION 4. Section 26.111(a), Tax Code, is amended to read
as follows:
(a) If an organization acquires taxable property that
qualifies for and is granted an exemption under Section 11.181(a),
11.1815(a), or 11.182(a) for the year in which the property was
acquired, the amount of tax due on the property for that year is
calculated by multiplying the amount of taxes imposed on the
property for the entire year as provided by Section 26.09 by a
fraction, the denominator of which is 365 and the numerator of which
is the number of days in that year before the date the charitable
organization acquired the property.
SECTION 5. Section 34.01(o), Tax Code, is amended to read as
follows:
(o) If a bid sufficient to pay the amount specified by
Subsection (p) is not received, the officer making the sale, with
the consent of the collector who applied for the tax warrant, may
offer property seized under Subchapter E, Chapter 33, to a person
described by Section 11.181, 11.1815, or 11.20 for less than that
amount. If the property is offered to a person described by Section
11.181, 11.1815, or 11.20, the officer making the sale shall reopen
the bidding at the amount of that person's bid and bid off the
property to the highest bidder. Consent to the sale by the taxing
units entitled to receive proceeds of the sale is not required. The
acceptance of a bid by the officer under this subsection is
conclusive and binding on the question of its sufficiency. An
action to set aside the sale on the grounds that a bid is
insufficient may not be sustained, except that a taxing unit that
participates in distribution of proceeds of the sale may file an
action before the first anniversary of the date of the sale to set
aside the sale on the grounds of fraud or collusion between the
officer making the sale and the purchaser.
SECTION 6. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 7. This Act takes effect January 1, 2016.