Texas 2017 - 85th Regular

Texas House Bill HB1548 Compare Versions

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

Old	New	Differences
1	1	85R2215 TJB-F
2	2	By: Dutton H.B. No. 1548
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 by a school
8	8	district of certain property used to build low-income or
9	9	moderate-income housing.
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 11.1828 to read as follows:
13	13	Sec. 11.1828. LOW-INCOME AND MODERATE-INCOME HOUSING NEAR
14	14	SCHOOL. (a) In this section:
15	15	(1) "Area median income" means the area median income
16	16	as determined by the Texas Department of Housing and Community
17	17	Affairs under Section 2306.123, Government Code.
18	18	(2) "Rural area" and "urban area" have the meanings
19	19	assigned by Section 2306.004, Government Code.
20	20	(b) A person is entitled to an exemption from taxation by a
21	21	school district of improved and unimproved real property, any part
22	22	of which is located within a one-mile radius of the center of a
23	23	campus of that school district that the person owns for the purpose
24	24	of building:
25	25	(1) in an urban area:
26	26	(A) 25 or more new single-family dwellings to be
27	27	sold or leased to individuals or families earning not more than 60
28	28	percent of the area median income; or
29	29	(B) a new multifamily housing project consisting
30	30	of 150 or more dwelling units to be rented to individuals or
31	31	families earning not more than 60 percent of the area median income;
32	32	or
33	33	(2) in a rural area:
34	34	(A) 10 or more new single-family dwellings to be
35	35	sold or leased to individuals or families earning not more than 60
36	36	percent of the area median income; or
37	37	(B) a new multifamily housing project consisting
38	38	of 60 or more dwelling units to be rented to individuals or families
39	39	earning not more than 60 percent of the area median income.
40	40	(c) Property may not be exempted from taxation under this
41	41	section after the third anniversary of the date the person acquires
42	42	the property.
43	43	(d) The chief appraiser of the appraisal district in which
44	44	property exempted from taxation under this section is located shall
45	45	determine the market value of the property each tax year and shall
46	46	record that value in the appraisal records for that tax year.
47	47	(e) If the person who owns property exempted from taxation
48	48	under this section sells, leases, or rents any part of the property
49	49	to an individual or family who does not satisfy the applicable
50	50	eligibility requirements prescribed by Subsection (b)(1) or (2), a
51	51	penalty is imposed on the property equal to the amount of the taxes
52	52	that would have been imposed on the property in each tax year that
53	53	the property was exempted from taxation, plus interest at an annual
54	54	rate of seven percent calculated from the dates on which the taxes
55	55	would have become due.
56	56	(f) If the penalty prescribed by Subsection (e) is imposed
57	57	on property because the property is sold to a person who does not
58	58	satisfy the applicable eligibility requirements of Subsection
59	59	(b)(1)(A) or (2)(A), the person who received the exemption under
60	60	this section for the property and the purchaser of the property are
61	61	jointly and severally liable for the penalty and interest. A tax
62	62	lien in favor of the school district for which the penalty is
63	63	imposed attaches to the property to secure payment of the penalty
64	64	and interest.
65	65	(g) The chief appraiser shall make an entry in the appraisal
66	66	records for the property against which a penalty is imposed under
67	67	Subsection (e) and shall deliver written notice of the imposition
68	68	of the penalty and interest to the persons who are jointly and
69	69	severally liable for that penalty and interest.
70	70	SECTION 2. Section 11.436(a), Tax Code, is amended to read
71	71	as follows:
72	72	(a) A person who [An organization that] acquires property
73	73	that qualifies for an exemption under Section 11.181(a), [or]
74	74	11.1825, or 11.1828 may apply for the exemption for the year of
75	75	acquisition not later than the 30th day after the date the person
76	76	[organization] acquires the property, and the deadline provided by
77	77	Section 11.43(d) does not apply to the application for that year.
78	78	SECTION 3. The heading to Section 26.111, Tax Code, is
79	79	amended to read as follows:
80	80	Sec. 26.111. PRORATING TAXES--ACQUISITION BY PERSON FOR
81	81	LOW-INCOME AND MODERATE-INCOME HOUSING PROJECTS [CHARITABLE
82	82	ORGANIZATION].
83	83	SECTION 4. Section 26.111(a), Tax Code, is amended to read
84	84	as follows:
85	85	(a) If a person [an organization] acquires taxable property
86	86	that qualifies for and is granted an exemption under Section
87	87	11.181(a), [or] 11.182(a), or 11.1828 for the year in which the
88	88	property was acquired, the amount of tax due on the property for
89	89	that year is calculated by multiplying the amount of taxes imposed
90	90	on the property for the entire year as provided by Section 26.09 by
91	91	a fraction, the denominator of which is 365 and the numerator of
92	92	which is the number of days in that year before the date the person
93	93	[charitable organization] acquired the property.
94	94	SECTION 5. This Act applies only to an ad valorem tax year
95	95	that begins on or after the effective date of this Act.
96	96	SECTION 6. This Act takes effect January 1, 2018, but only
97	97	if the constitutional amendment proposed by the 85th Legislature,
98	98	Regular Session, 2017, authorizing the legislature to exempt from
99	99	ad valorem taxation by one or more political subdivisions of this
100	100	state property located near a public school that is owned for the
101	101	purpose of building low-income or moderate-income housing is
102	102	approved by the voters. If that amendment is not approved by the
103	103	voters, this Act has no effect.