Texas House Bill HB3752

Texas 2017 - 85th Regular

Caption

Relating to the appraisal for ad valorem tax purposes of certain nonexempt property used for low-income or moderate-income housing.

Impact

The enactment of HB 3752 is expected to influence the way local taxing authorities approach the valuation of properties dedicated to serving low-income or moderate-income families. By standardizing the appraisal process, the bill aims to ensure that these properties are assessed fairly based upon projections of their potential income and operating expenses. This may support the stabilization of affordable housing markets by avoiding inflated property valuations that can arise from rapid valuation increases in the broader real estate market.

Summary

House Bill 3752 is designed to modify the appraisal methods for ad valorem tax purposes regarding certain nonexempt properties designated for use in low-income or moderate-income housing. The bill stipulates specific criteria that such properties must meet to qualify for distinctive appraisal treatment. This included properties financed under the low income housing tax credit program that must follow the guidelines of a land use restriction agreement with respect to their operational status and financial projections for appraisal purposes.

Contention

While proponents of HB 3752 argue that the bill enhances the stability and predictability of property taxes for affordable housing developments, there are concerns regarding its implications for local revenue generation. Critics may view it as potentially undermining the financial resources available to local governments, which heavily depend on property taxes. Additionally, there may be debates on whether uniform appraisal standards account adequately for the nuanced economic realities of different communities and neighborhoods typically served by low-income housing initiatives.