LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 6, 2023 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3691 by Hefner (relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.), Committee Report 1st House, Substituted Passage of the bill would expand eligibility for the exemption for certain charitable organizations to include organizations that provide charitable housing and services to persons who are at least 62 years of age, with some qualifications. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas. The bill would amend Chapter 11 of the Tax Code, relating to Taxable Property and Exemptions, to expand eligibility for the exemption for certain charitable organizations to include organizations that provide charitable housing and services, in an amount not less than four percent of the organization's net resident revenue, to persons who are at least 62 years of age. The bill would add a definition for charitable housing and services.To the extent the bill would result in an increase in the number of organizations eligible for exemption, there would be reduced taxable property value and a cost to the state through the operation of school funding formulas. However, the number of newly-qualifying organizations associated with the bill's provisions is unknown; consequently, the taxable property value loss cannot be determined. Local Government ImpactPassage of the bill would expand eligibility for the exemption for certain charitable organizations to include organizations that provide charitable housing and services to persons who are at least 62 years of age, with some qualifications. As a result, taxable property values could be reduced. However, the no-new-revenue and voter-approval tax rates as provided by Section 26.04, Tax Code could be higher as a consequence of the reduced taxable value proposed by the bill. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 6, 2023
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3691 by Hefner (relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.), Committee Report 1st House, Substituted
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3691 by Hefner (relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.), Committee Report 1st House, Substituted
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3691 by Hefner (relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.), Committee Report 1st House, Substituted
HB3691 by Hefner (relating to the exemption from ad valorem taxation of certain property owned by a charitable organization that is engaged in providing housing and related facilities and services to persons who are at least 62 years of age.), Committee Report 1st House, Substituted
Passage of the bill would expand eligibility for the exemption for certain charitable organizations to include organizations that provide charitable housing and services to persons who are at least 62 years of age, with some qualifications. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.
Passage of the bill would expand eligibility for the exemption for certain charitable organizations to include organizations that provide charitable housing and services to persons who are at least 62 years of age, with some qualifications. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.
The bill would amend Chapter 11 of the Tax Code, relating to Taxable Property and Exemptions, to expand eligibility for the exemption for certain charitable organizations to include organizations that provide charitable housing and services, in an amount not less than four percent of the organization's net resident revenue, to persons who are at least 62 years of age. The bill would add a definition for charitable housing and services.To the extent the bill would result in an increase in the number of organizations eligible for exemption, there would be reduced taxable property value and a cost to the state through the operation of school funding formulas. However, the number of newly-qualifying organizations associated with the bill's provisions is unknown; consequently, the taxable property value loss cannot be determined.
Local Government Impact
Passage of the bill would expand eligibility for the exemption for certain charitable organizations to include organizations that provide charitable housing and services to persons who are at least 62 years of age, with some qualifications. As a result, taxable property values could be reduced. However, the no-new-revenue and voter-approval tax rates as provided by Section 26.04, Tax Code could be higher as a consequence of the reduced taxable value proposed by the bill.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD, BRI
JMc, KK, SD, BRI