Texas Senate Bill SB1830

Texas 2019 - 86th 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 bill impacts local taxation laws by establishing clearer guidelines for the appraisal of housing intended for low- to moderate-income families. It stipulates that properties not currently receiving an exemption but utilized for these purposes may still be assessed differently than other nonexempt properties. Such a structure aims to encourage the development and maintenance of affordable housing, thereby potentially addressing housing shortages for these income groups.

Summary

Senate Bill 1830 pertains to the appraisal process for ad valorem tax purposes of certain nonexempt properties used for low-income or moderate-income housing. The bill amends specific sections of the Texas Tax Code to clarify the criteria and methodologies for determining the appraised value of properties owned by organizations renting to eligible individuals or families. This includes properties financed under the low income housing tax credit program and those subject to land use restriction agreements.

Contention

Notably, one of the major points of contention surrounding SB1830 revolves around the implications of imposing additional tax liabilities when a property ceases to meet the eligibility requirements. If properties change ownership and exit the low-income classifications, an additional tax is mandated based on previous appraisal rates. Critics of this provision may argue it could disincentivize the development of affordable housing by making financial management more complex during ownership transitions.