85R2215 TJB-F
By: Dutton H.B. No. 1548
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation by a school
district of certain property used to build low-income or
moderate-income housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.1828 to read as follows:
Sec. 11.1828. LOW-INCOME AND MODERATE-INCOME HOUSING NEAR
SCHOOL. (a) In this section:
(1) "Area median income" means the area median income
as determined by the Texas Department of Housing and Community
Affairs under Section 2306.123, Government Code.
(2) "Rural area" and "urban area" have the meanings
assigned by Section 2306.004, Government Code.
(b) A person is entitled to an exemption from taxation by a
school district of improved and unimproved real property, any part
of which is located within a one-mile radius of the center of a
campus of that school district that the person owns for the purpose
of building:
(1) in an urban area:
(A) 25 or more new single-family dwellings to be
sold or leased to individuals or families earning not more than 60
percent of the area median income; or
(B) a new multifamily housing project consisting
of 150 or more dwelling units to be rented to individuals or
families earning not more than 60 percent of the area median income;
or
(2) in a rural area:
(A) 10 or more new single-family dwellings to be
sold or leased to individuals or families earning not more than 60
percent of the area median income; or
(B) a new multifamily housing project consisting
of 60 or more dwelling units to be rented to individuals or families
earning not more than 60 percent of the area median income.
(c) Property may not be exempted from taxation under this
section after the third anniversary of the date the person acquires
the property.
(d) The chief appraiser of the appraisal district in which
property exempted from taxation under this section is located shall
determine the market value of the property each tax year and shall
record that value in the appraisal records for that tax year.
(e) If the person who owns property exempted from taxation
under this section sells, leases, or rents any part of the property
to an individual or family who does not satisfy the applicable
eligibility requirements prescribed by Subsection (b)(1) or (2), 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, plus interest at an annual
rate of seven percent calculated from the dates on which the taxes
would have become due.
(f) If the penalty prescribed by Subsection (e) is imposed
on property because the property is sold to a person who does not
satisfy the applicable eligibility requirements of Subsection
(b)(1)(A) or (2)(A), the person who received the exemption under
this section for the property and the purchaser of the property are
jointly and severally liable for the penalty and interest. A tax
lien in favor of the school district 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 is imposed under
Subsection (e) and shall deliver written notice of the imposition
of the penalty and interest to the persons who are jointly and
severally liable for that penalty and interest.
SECTION 2. Section 11.436(a), Tax Code, is amended to read
as follows:
(a) A person who [An organization that] acquires property
that qualifies for an exemption under Section 11.181(a), [or]
11.1825, or 11.1828 may apply for the exemption for the year of
acquisition not later than the 30th day after the date the person
[organization] acquires the property, and the deadline provided by
Section 11.43(d) does not apply to the application for that year.
SECTION 3. The heading to Section 26.111, Tax Code, is
amended to read as follows:
Sec. 26.111. PRORATING TAXES--ACQUISITION BY PERSON FOR
LOW-INCOME AND MODERATE-INCOME HOUSING PROJECTS [CHARITABLE
ORGANIZATION].
SECTION 4. Section 26.111(a), Tax Code, is amended to read
as follows:
(a) If a person [an organization] acquires taxable property
that qualifies for and is granted an exemption under Section
11.181(a), [or] 11.182(a), or 11.1828 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 person
[charitable organization] acquired the property.
SECTION 5. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 6. This Act takes effect January 1, 2018, but only
if the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, authorizing the legislature to exempt from
ad valorem taxation by one or more political subdivisions of this
state property located near a public school that is owned for the
purpose of building low-income or moderate-income housing is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.