Texas 2017 - 85th Regular

Texas Senate Bill SB1931 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: West S.B. No. 1931
	2	+	(In the Senate - Filed March 10, 2017; March 27, 2017, read
	3	+	first time and referred to Committee on Intergovernmental
	4	+	Relations; May 2, 2017, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 6, Nays 0;
	6	+	May 2, 2017, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1931 By: Garcia
2	9
3	10
4	11		A BILL TO BE ENTITLED
5	12		AN ACT
6	13		relating to community land trusts.
7	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	15		SECTION 1. Section 373B.003, Local Government Code, is
9	16		amended to read as follows:
10	17		Sec. 373B.003. NATURE OF TRUST. A community land trust
11	18		created or designated under Section 373B.002 must be a nonprofit
12	19		organization that is:
13	20		(1) created to acquire and hold land for the benefit of
14	21		developing and preserving long-term affordable housing in the
15	22		municipality or county; and
16	23		(2) organized as:
17	24		(A) a nonprofit corporation that is exempt from
18	25		federal income taxation under Section 501(a), Internal Revenue Code
19	26		of 1986, by being listed [certified] as an exempt organization
20	27		under Section 501(c)(3) of that code;
21	28		(B) a limited partnership of which a nonprofit
22	29		corporation described by Paragraph (A) controls 100 percent of the
23	30		general partner interest; or
24	31		(C) a limited liability company for which a
25	32		nonprofit corporation described by Paragraph (A) serves as the only
26	33		member.
27	34		SECTION 2. Section 11.1827, Tax Code, is amended by adding
28	35		Subsection (g) to read as follows:
29	36		(g) Once adopted by the governing body of a taxing unit, the
30	37		exemption provided by this section continues to apply to property
31	38		located in the taxing unit until the governing body rescinds the
32	39		exemption in the manner provided by law for official action by the
33	40		body.
34	41		SECTION 3. Sections 23.21(c) and (d), Tax Code, are amended
35	42		to read as follows:
36	43		(c) In appraising land or a housing unit that is leased by a
37	44		community land trust created or designated under Section 373B.002,
38	45		Local Government Code, to a family meeting the income-eligibility
39	46		standards established by Section 373B.006 of that code under
40	47		regulations or restrictions limiting the amount that the family may
41	48		be required to pay for the rental or lease of the property, the
42	49		chief appraiser shall use the income method of appraisal as
43	50		described by Section 23.012 to determine the appraised value of the
44	51		property. The chief appraiser shall use that method regardless of
45	52		whether the chief appraiser considers that method to be the most
46	53		appropriate method of appraising the property. In appraising the
47	54		property, the chief appraiser shall:
48	55		(1) take into account the [extent to which that] use
49	56		and limitation applicable to the property for purposes of computing
50	57		the actual rental income from the property and projecting future
51	58		rental income; and
52	59		(2) use the same capitalization rate that the chief
53	60		appraiser uses to appraise other rent-restricted properties
54	61		[reduce the market value of the property].
55	62		(d) In appraising a housing unit that the owner or a
56	63		predecessor of the owner acquired from a community land trust
57	64		created or designated under Section 373B.002, Local Government
58	65		Code, and that is located on land owned by the trust and leased by
59	66		the owner of the housing unit, the chief appraiser shall take into
60	67		account the extent to which any regulations or restrictions
61	68		limiting the right of the owner of the housing unit to sell the
62	69		housing unit, including any limitation on the price for which the
63	70		housing unit may be sold, reduce the market value of the housing
64	71		unit. If sale of the housing unit is subject to an eligible land use
65	72		restriction, the chief appraiser may not appraise the housing unit
66	73		in a tax year for an amount that exceeds the price for which the
67	74		housing unit may be sold under the eligible land use restriction in
68	75		that tax year. For purposes of this subsection, "eligible land use
69	76		restriction" means an agreement or restrictive covenant applicable
70	77		to a housing unit that:
71	78		(1) is recorded in the real property records;
72	79		(2) has a term of at least 40 years;
73	80		(3) restricts the price for which the housing unit may
74	81		be sold to a price that is equal to or less than the market value of
75	82		the housing unit; and
76	83		(4) restricts the sale of the housing unit to a family
77	84		meeting the income-eligibility standards established by Section
78	85		373B.006, Local Government Code.
79	86		SECTION 4. Section 26.10, Tax Code, is amended by amending
80	87		Subsection (a) and adding Subsection (d) to read as follows:
81	88		(a) If the appraisal roll shows that a property is eligible
82	89		for taxation for only part of a year because an exemption, other
83	90		than a residence homestead exemption or an exemption described by
84	91		Subsection (d), applicable on January 1 of that year terminated
85	92		during the year, the tax due against the property is calculated by
86	93		multiplying the tax due for the entire year as determined as
87	94		provided by Section 26.09 [of this code] by a fraction, the
88	95		denominator of which is 365 and the numerator of which is the number
89	96		of days the exemption is not applicable.
90	97		(d) Subsection (a) does not apply to an exemption for land
91	98		received by an organization under Section 11.181, 11.182, or
92	99		11.1825 that terminated during the year because of the sale by the
93	100		organization of a housing unit located on the land if:
94	101		(1) the housing unit is sold to a family meeting the
95	102		income-eligibility standards established by Section 373B.006,
96	103		Local Government Code;
97	104		(2) the organization retains title to the land on
98	105		which the housing unit is located; and
99	106		(3) before the date on which the housing unit is sold,
100	107		the organization is designated a community land trust by the
101	108		governing body of a municipality or county as provided by Section
102	109		373B.002, Local Government Code.
103	110		SECTION 5. This Act applies only to ad valorem taxes imposed
104	111		for a tax year that begins on or after the effective date of this
105	112		Act.
106	113		SECTION 6. This Act takes effect September 1, 2017.
	114	+	* * * * *