Texas Senate Bill SB547

Texas 2019 - 86th Regular

Caption

Relating to the period for which certain property acquired by a charitable organization to provide low-income housing may be exempted from ad valorem taxation.

Impact

With this amendment, charitable organizations will benefit from an extended period of property tax exemption, which may incentivize the acquisition and development of low-income housing. The ten-year exemption period is expected to help these organizations ensure stability and sustainability in their operations as they can allocate the funds that would otherwise go towards taxes back into community services and housing projects. This bill, therefore, supports the underlying goals of increasing the availability of affordable housing for low-income residents.

Summary

Senate Bill 547 aims to amend the Texas Tax Code regarding the ad valorem tax exemption period for property acquired by charitable organizations aimed at providing low-income housing. The bill specifically proposes to extend the period during which such properties can receive tax exemptions from five years to ten years. This change is intended to provide additional financial relief for charitable organizations, allowing them to maintain low-income housing initiatives without the immediate financial burden of property taxes.

Contention

However, this proposal may raise concerns among stakeholders regarding the potential impact on local revenue. As property taxes contribute significantly to local budgets, extending tax exemptions could lead to decreased funding for essential public services. Critics of the bill may argue that prolonged exemptions should be closely evaluated to ensure that they do not compromise the financial health of local governments. Discussions may center around finding a balance between supporting charitable organizations and preserving the financial resources necessary for local communities.