Relating to the appraisal for ad valorem tax purposes of certain nonexempt property used for low-income or moderate-income housing.
Impact
The implementation of HB2532 would have significant implications for how low-income housing is valued for tax purposes in Texas. By mandating the use of the income method of appraisal, the bill seeks to provide a more equitable assessment of property taxes owed based on the actual income generated by such properties. This change could alleviate some financial burdens on owners of low-income housing, potentially allowing them to maintain lower rent prices and thus supporting the availability of affordable housing options.
Summary
House Bill 2532 proposes an amendment to the Tax Code concerning the appraisal for ad valorem tax purposes of nonexempt properties used for low-income or moderate-income housing. The bill specifically addresses properties owned by organizations that rent them to eligible individuals or families and establishes a method for appraising such properties based on their income potential. This shift aims to ensure that property taxes reflect the operational realities and income-generating capacity of housing aimed at low- and moderate-income populations.
Contention
Although the bill aims to enhance the affordability and availability of low-income housing, it may encounter contention surrounding the potential loss of tax revenue at local levels due to the altered appraisal methods. Legislators and local governments might express concerns that the change could place a heavier burden on other property owners or the local tax base. Furthermore, the parameters of income assessment and projections could lead to disagreements over what constitutes fair valuation under this new law.
Relating to an exemption from ad valorem taxation of real property owned by a charitable organization for the purpose of renting the property at below-market rates to low-income and moderate-income households.
Relating to an exemption from ad valorem taxation of real property owned by a charitable organization for the purpose of renting the property at below-market rates to low-income and moderate-income households.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to the appraisal for ad valorem tax purposes of tangible personal property used for the production of income that, in the owner's opinion, has an aggregate value of less than a certain amount.