Texas House Bill HB1513

Texas 2017 - 85th 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

If passed, HB1513 will modify existing tax exemption regulations, essentially limiting the duration for which properties acquired by charitable non-profits can enjoy exemption from ad valorem taxes. The change aims to stimulate compliance and reassess the financial impact of sustained tax exemptions on local government revenue. By imposing a capped duration, the bill seeks to balance support for low-income housing initiatives with the need for adequate tax revenue to fund public services.

Summary

House Bill 1513 proposes an amendment to the Texas Tax Code regarding the property tax exemption period for certain properties acquired by charitable organizations for the purpose of providing low-income housing. The bill specifically mandates that the exemption period shall not extend beyond the tenth anniversary of the property acquisition date by the organization. This amendment aims to clarify the duration of tax exemptions in order to ensure that they are appropriately limited and to maintain fiscal responsibility in the state's taxation policies.

Contention

Some stakeholders may contend that limiting the tax exemption to ten years could have detrimental effects on charitable organizations that primarily provide low-income housing. Opponents may argue that this measure could disincentivize the long-term investments necessary for maintaining affordable housing options. On the other hand, supporters of the bill may advocate that it fosters a more equitable taxation environment while ensuring that the benefits of tax exemptions are not prolonged beyond their intended purpose, thereby encouraging more organizations to engage in developing affordable housing.

Notable points

The bill's implementation would require charitable organizations to prepare for potential tax liabilities after the expiration of the exemption period. This transition may necessitate budget adjustments for such organizations as they anticipate the tax implications of their properties. Legislatively, the bill reflects ongoing discussions around the balance of property rights, investment in community welfare, and protecting local taxation bases.