Texas House Bill HB3999

Texas 2017 - 85th Regular

Caption

Relating to the appraisal for ad valorem tax purposes of certain property used to provide affordable housing.

Impact

If enacted, HB 3999 would modify the appraisal process for certain properties, potentially benefiting low-income and moderate-income families who purchase homes through these charitable organizations. It stipulates that the chief appraiser shall consider the resale restrictions and conditions linked to these properties when determining their taxable value. This means that properties sold under fixed or shared appreciation programs will not see their projected appreciation counts toward their tax assessment, effectively lowering the tax burden on these homeowners. The bill is expected to facilitate access to home ownership among economically vulnerable populations by mitigating the financial pressures associated with rising property taxes.

Summary

House Bill 3999 aims to amend the Tax Code regarding the appraisal for ad valorem tax purposes specifically for real property that was previously owned by charitable organizations and sold to low- or moderate-income individuals or families. The bill introduces provisions that aim to protect the market value appraisals of properties designated for affordable housing, ensuring that specific resale restrictions or conditions imposed by organizations do not unfairly inflate property taxes for low-income homeowners. This move is seen as a way to support affordable housing initiatives by making it financially feasible for eligible buyers to maintain their homes without being burdened by excessive property taxes.

Contention

The discussion surrounding HB 3999 may include concerns about balancing the need for adequate funding through property taxes versus the necessity of supporting low- and moderate-income families in achieving homeownership. While proponents argue that the bill will aid in maintaining affordable housing options, opponents could raise questions about the long-term implications for local tax revenues and whether the property tax base would be sufficiently protected. Debates may emerge over whether such tax exemptions or reductions could lead to disparities in funding for community services reliant on property tax income.