Texas 2015 - 84th Regular

Texas House Bill HB2914 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R7206 CJC-D
2	2	By: Alvarado H.B. No. 2914
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption from ad valorem taxation of property
8	8	owned by certain charitable organizations that provide affordable
9	9	housing to low-income veterans and their dependents.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
12	12	adding Section 11.1815 to read as follows:
13	13	Sec. 11.1815. CHARITABLE ORGANIZATIONS IMPROVING PROPERTY
14	14	TO PROVIDE HOUSING FOR LOW-INCOME VETERANS. (a) An organization is
15	15	entitled to an exemption from taxation of improved or unimproved
16	16	real property it owns if the organization:
17	17	(1) meets the requirements of a charitable
18	18	organization provided by Sections 11.18(e) and (f);
19	19	(2) owns the property for the purpose of constructing
20	20	or rehabilitating housing, regardless of whether the housing
21	21	consists of multifamily or single-family dwellings, on the property
22	22	to lease without profit to a veteran of the armed services of the
23	23	United States who satisfies the organization's low-income and other
24	24	eligibility requirements; and
25	25	(3) engages exclusively in the construction,
26	26	rehabilitation, and lease of housing as described by Subdivision
27	27	(2) and related activities.
28	28	(b) Property may not receive an exemption under this section
29	29	unless all of the dwelling units located on the property are
30	30	reserved for individuals or families described by Subsection
31	31	(a)(2).
32	32	(c) Property may not be exempted under Subsection (a) after
33	33	the 10th anniversary of the date the organization acquires the
34	34	property. Property that received an exemption under Section
35	35	11.1825 and that was subsequently transferred by the organization
36	36	described by that section that qualified for the exemption to an
37	37	organization described by this section may not be exempted under
38	38	Subsection (a) after the 10th anniversary of the date the
39	39	transferring organization acquired the property.
40	40	(d) An organization entitled to an exemption under
41	41	Subsection (a) is also entitled to an exemption from taxation of any
42	42	building or tangible personal property the organization owns and
43	43	uses in the administration of its acquisition, construction,
44	44	rehabilitation, or lease of property. To qualify for an exemption
45	45	under this subsection, property must be used exclusively by the
46	46	charitable organization, except that another individual or
47	47	organization may use the property for activities incidental to the
48	48	charitable organization's use that benefit the beneficiaries of the
49	49	charitable organization.
50	50	(e) For the purposes of Subsection (f), the chief appraiser
51	51	of the appraisal district in which the property subject to the
52	52	exemption is located shall determine the market value of property
53	53	exempted under Subsection (a) and shall record the market value in
54	54	the appraisal records.
55	55	(f) If the organization that owns improved or unimproved
56	56	real property that has been exempted under Subsection (a) leases
57	57	the property or any dwelling unit located on the property to a
58	58	person other than an individual or family satisfying the
59	59	organization's low-income or other eligibility requirements, a
60	60	penalty is imposed on the property equal to the amount of the taxes
61	61	that would have been imposed on the property in each tax year that
62	62	the property was exempted from taxation under Subsection (a), plus
63	63	interest at an annual rate of 12 percent calculated from the dates
64	64	on which the taxes would have become due. A tax lien in favor of all
65	65	taxing units for which the penalty is imposed attaches to the
66	66	property to secure payment of the penalty and interest.
67	67	(g) The chief appraiser shall make an entry in the appraisal
68	68	records for the property against which a penalty under Subsection
69	69	(f) is imposed and shall deliver written notice of the imposition of
70	70	the penalty and interest to the charitable organization.
71	71	SECTION 2. Section 11.1825(p-1), Tax Code, is amended to
72	72	read as follows:
73	73	(p-1) Notwithstanding the other provisions of this section,
74	74	the transfer of property from an organization described by this
75	75	section to a nonprofit organization that claims an exemption for
76	76	the property under Section 11.181(a) or 11.1815(a) is a proper use
77	77	of and purpose for owning the property under this section and does
78	78	not affect the eligibility of the property for an exemption under
79	79	this section.
80	80	SECTION 3. Sections 11.436(a) and (c), Tax Code, are
81	81	amended to read as follows:
82	82	(a) An organization that acquires property that qualifies
83	83	for an exemption under Section 11.181(a), 11.1815(a), or 11.1825
84	84	may apply for the exemption for the year of acquisition not later
85	85	than the 30th day after the date the organization acquires the
86	86	property, and the deadline provided by Section 11.43(d) does not
87	87	apply to the application for that year.
88	88	(c) To facilitate the financing associated with the
89	89	acquisition of a property, an organization, before acquiring the
90	90	property, may request from the chief appraiser of the appraisal
91	91	district established for the county in which the property is
92	92	located a preliminary determination of whether the property would
93	93	qualify for an exemption under Section 11.1815 or 11.1825 if
94	94	acquired by the organization. The request must include the
95	95	information that would be included in an application for an
96	96	exemption for the property under Section 11.1815 or 11.1825. Not
97	97	later than the 45th day after the date a request is submitted under
98	98	this subsection, the chief appraiser shall issue a written
99	99	preliminary determination for the property included in the request.
100	100	A preliminary determination does not affect the granting of an
101	101	exemption under Section 11.1815 or 11.1825.
102	102	SECTION 4. Section 26.111(a), Tax Code, is amended to read
103	103	as follows:
104	104	(a) If an organization acquires taxable property that
105	105	qualifies for and is granted an exemption under Section 11.181(a),
106	106	11.1815(a), or 11.182(a) for the year in which the property was
107	107	acquired, the amount of tax due on the property for that year is
108	108	calculated by multiplying the amount of taxes imposed on the
109	109	property for the entire year as provided by Section 26.09 by a
110	110	fraction, the denominator of which is 365 and the numerator of which
111	111	is the number of days in that year before the date the charitable
112	112	organization acquired the property.
113	113	SECTION 5. Section 34.01(o), Tax Code, is amended to read as
114	114	follows:
115	115	(o) If a bid sufficient to pay the amount specified by
116	116	Subsection (p) is not received, the officer making the sale, with
117	117	the consent of the collector who applied for the tax warrant, may
118	118	offer property seized under Subchapter E, Chapter 33, to a person
119	119	described by Section 11.181, 11.1815, or 11.20 for less than that
120	120	amount. If the property is offered to a person described by Section
121	121	11.181, 11.1815, or 11.20, the officer making the sale shall reopen
122	122	the bidding at the amount of that person's bid and bid off the
123	123	property to the highest bidder. Consent to the sale by the taxing
124	124	units entitled to receive proceeds of the sale is not required. The
125	125	acceptance of a bid by the officer under this subsection is
126	126	conclusive and binding on the question of its sufficiency. An
127	127	action to set aside the sale on the grounds that a bid is
128	128	insufficient may not be sustained, except that a taxing unit that
129	129	participates in distribution of proceeds of the sale may file an
130	130	action before the first anniversary of the date of the sale to set
131	131	aside the sale on the grounds of fraud or collusion between the
132	132	officer making the sale and the purchaser.
133	133	SECTION 6. This Act applies only to ad valorem taxes imposed
134	134	for a tax year beginning on or after the effective date of this Act.
135	135	SECTION 7. This Act takes effect January 1, 2016.