Texas Senate Bill SB282

Texas 2015 - 84th Regular

Caption

Relating to the period for which certain property acquired by a charitable organization to provide low-income housing may be exempted from ad valorem taxation.

Impact

The implementation of SB282 is expected to influence state tax policy by allowing charitable organizations more substantial tax relief as they provide low-income housing. The extended exemption period may encourage more organizations to engage in housing development, thereby contributing to an increase in available affordable housing units. This legislative change may also result in the reallocation of local government revenues, as properties previously exempted under shorter durations can now remain non-taxable for a longer timeframe, influencing budgetary considerations for local agencies.

Summary

SB282 amends the Texas Tax Code concerning the exemption period for certain properties acquired by charitable organizations aimed at providing low-income housing. Specifically, the bill changes the exemption duration from five years to ten years after the acquisition of the property. This extension is intended to incentivize charitable organizations to invest in affordable housing initiatives over a longer period, thereby supporting efforts to address housing shortages for low-income populations.

Contention

Debate surrounding SB282 may center on its implications for local tax revenues and the balance of support for charitable efforts versus the fiscal needs of local governments. Proponents are likely to argue that the bill promotes essential housing initiatives, while opponents may raise concerns about the long-term impacts on local government revenue stream and the potential reduction in funds available for public services. As the bill encourages the construction and management of low-income housing, it is crucial to consider the fiscal trade-offs and community needs that accompany such tax relief measures.