Texas 2019 - 86th Regular

Texas House Bill HB1194 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7486 TJB-F
2	2	By: Dutton H.B. No. 1194
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption from ad valorem taxation by a school
8	8	district of certain property used to build low-income housing.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
11	11	adding Section 11.1828 to read as follows:
12	12	Sec. 11.1828. LOW-INCOME HOUSING NEAR SCHOOL OR WITHIN
13	13	MUNICIPAL MANAGEMENT DISTRICT. (a) In this section:
14	14	(1) "Area median income" means the area median income
15	15	as determined by the Texas Department of Housing and Community
16	16	Affairs under Section 2306.123, Government Code.
17	17	(2) "Municipal management district" means a municipal
18	18	management district created under:
19	19	(A) Chapter 375, Local Government Code; or
20	20	(B) a special law to accomplish the purposes of
21	21	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
22	22	Texas Constitution.
23	23	(3) "Rural area" and "urban area" have the meanings
24	24	assigned by Section 2306.004, Government Code.
25	25	(b) A person is entitled to an exemption from taxation by a
26	26	school district of improved and unimproved real property, any part
27	27	of which is located within a one-mile radius of the center of a
28	28	campus of that school district or within a municipal management
29	29	district that the person owns for the purpose of building:
30	30	(1) in an urban area:
31	31	(A) 25 or more new single-family dwellings to be
32	32	sold or leased to individuals or families earning not more than 25
33	33	percent of the area median income; or
34	34	(B) a new multifamily housing project consisting
35	35	of 150 or more dwelling units to be rented to individuals or
36	36	families earning not more than 25 percent of the area median income;
37	37	or
38	38	(2) in a rural area:
39	39	(A) 10 or more new single-family dwellings to be
40	40	sold or leased to individuals or families earning not more than 25
41	41	percent of the area median income; or
42	42	(B) a new multifamily housing project consisting
43	43	of 60 or more dwelling units to be rented to individuals or families
44	44	earning not more than 25 percent of the area median income.
45	45	(c) Property may not be exempted from taxation under this
46	46	section after the third anniversary of the date the person acquires
47	47	the property.
48	48	(d) The chief appraiser of the appraisal district in which
49	49	property exempted from taxation under this section is located shall
50	50	determine the market value of the property each tax year and shall
51	51	record that value in the appraisal records for that tax year.
52	52	(e) If the person who owns property exempted from taxation
53	53	under this section sells, leases, or rents any part of the property
54	54	to an individual or family who does not satisfy the applicable
55	55	eligibility requirements prescribed by Subsection (b)(1) or (2), a
56	56	penalty is imposed on the property equal to the amount of the taxes
57	57	that would have been imposed on the property in each tax year that
58	58	the property was exempted from taxation, plus interest at an annual
59	59	rate of seven percent calculated from the dates on which the taxes
60	60	would have become due.
61	61	(f) If the penalty prescribed by Subsection (e) is imposed
62	62	on property because the property is sold to a person who does not
63	63	satisfy the applicable eligibility requirements of Subsection
64	64	(b)(1)(A) or (2)(A), the person who received the exemption under
65	65	this section for the property and the purchaser of the property are
66	66	jointly and severally liable for the penalty and interest. A tax
67	67	lien in favor of the school district for which the penalty is
68	68	imposed attaches to the property to secure payment of the penalty
69	69	and interest.
70	70	(g) The chief appraiser shall make an entry in the appraisal
71	71	records for the property against which a penalty is imposed under
72	72	Subsection (e) and shall deliver written notice of the imposition
73	73	of the penalty and interest to the persons who are jointly and
74	74	severally liable for that penalty and interest.
75	75	SECTION 2. Section 11.436(a), Tax Code, is amended to read
76	76	as follows:
77	77	(a) A person who [An organization that] acquires property
78	78	that qualifies for an exemption under Section 11.181(a), [or]
79	79	11.1825, or 11.1828 may apply for the exemption for the year of
80	80	acquisition not later than the 30th day after the date the person
81	81	[organization] acquires the property, and the deadline provided by
82	82	Section 11.43(d) does not apply to the application for that year.
83	83	SECTION 3. The heading to Section 26.111, Tax Code, is
84	84	amended to read as follows:
85	85	Sec. 26.111. PRORATING TAXES--ACQUISITION BY PERSON FOR
86	86	LOW-INCOME HOUSING PROJECTS [CHARITABLE ORGANIZATION].
87	87	SECTION 4. Section 26.111(a), Tax Code, is amended to read
88	88	as follows:
89	89	(a) If a person [an organization] acquires taxable property
90	90	that qualifies for and is granted an exemption under Section
91	91	11.181(a), 11.182, or 11.1828 [11.182(a)] for the year in which the
92	92	property was acquired, the amount of tax due on the property for
93	93	that year is calculated by multiplying the amount of taxes imposed
94	94	on the property for the entire year as provided by Section 26.09 by
95	95	a fraction, the denominator of which is 365 and the numerator of
96	96	which is the number of days in that year before the date the person
97	97	[charitable organization] acquired the property.
98	98	SECTION 5. This Act applies only to an ad valorem tax year
99	99	that begins on or after the effective date of this Act.
100	100	SECTION 6. This Act takes effect January 1, 2020, but only
101	101	if the constitutional amendment proposed by the 86th Legislature,
102	102	Regular Session, 2019, authorizing the legislature to exempt from
103	103	ad valorem taxation by one or more political subdivisions of this
104	104	state property located near a public school or within a municipal
105	105	management district that is owned for the purpose of building
106	106	low-income housing is approved by the voters. If that amendment is
107	107	not approved by the voters, this Act has no effect.