Texas Senate Bill SB836

Texas 2019 - 86th Regular

Caption

Relating to the appraisal for ad valorem tax purposes of a housing unit that the owner or a predecessor of the owner acquired from a community land trust.

Impact

The primary impact of SB836 is the alteration of how ad valorem tax assessments are conducted for specific housing units obtained via community land trusts. By requiring that appraisers account for restrictions that limit sale prices due to land use agreements, the bill seeks to protect homeowners from being taxed at values that do not align with their actual selling options. This could foster a more stable housing environment by promoting affordability and sustaining homeownership within these community-focused housing models.

Summary

SB836 introduces amendments to the Tax Code concerning the appraisal of housing units obtained from community land trusts. The bill stipulates that when appraising a housing unit owned by an individual or their predecessor that has been acquired through a community land trust, considerations must be made regarding any restrictions on selling the unit that would lower its market value. This provision aims to ensure that these homes are assessed fairly, reflecting their limitations on pricing and resale potential.

Contention

Notable points of contention surrounding SB836 stem from the balance between sustaining local community initiatives and the state’s authority over tax regulations. Stakeholders may argue about the implications for tax revenue collection and the effectiveness of community land trusts in providing long-term affordable housing solutions. Critics might express concerns regarding the potential for misuse of appraisals or funding gaps that could arise from lower tax assessments, which could challenge public resources if not managed appropriately.