Relating to the appraisal for ad valorem tax purposes of certain nonexempt property used for low-income or moderate-income housing.
Impact
This bill impacts state laws directly related to property tax appraisals for housing entities dedicated to affordable housing solutions. It establishes a clear framework for appraising properties not subject to certain tax exemptions. The legislation is designed to ensure that property taxes reflect the operational realities of low-income housing facilities, thereby potentially lowering the tax burden for property owners and encouraging continued investment in affordable housing stock. Furthermore, it may result in enhanced transparency and consistency in the appraisal process across different jurisdictions.
Summary
House Bill 2993 addresses the appraisal process for ad valorem tax purposes of certain nonexempt properties used for low-income and moderate-income housing. The bill aims to amend the Texas Tax Code to provide specific guidelines on how properties, financed through state housing programs and intended for low-income individuals or families, should be appraised. The chief appraiser is tasked with determining the property’s appraised value based on projected income and expenses for the first year of operation as defined by underwriting reports from the Texas Department of Housing and Community Affairs.
Contention
While the bill passed with a significant majority in the legislature, its introduction and underlying principles raised points of contention regarding the balance between tax revenues and the need for affordable housing. Some legislators expressed concerns that while the bill aims to support low-income and moderate-income families, it could create a disparity between the tax burdens of different types of housing developments. Furthermore, there could be challenges regarding how effectively the chief appraisers apply these new standards uniformly across various counties, which may lead to disputes or perceived inequities.
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.
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.