H.B. No. 4645
AN ACT
relating to the exemption from ad valorem taxation of certain
property used to provide low-income or moderate-income housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.1825, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) An organization that leases land under a ground lease
is entitled to an exemption from taxation of the improvements owned
by the organization that the organization constructs or
rehabilitates and uses to provide housing to individuals or
families meeting the income eligibility requirements of this
section. An organization that leases land as described by this
subsection is considered to be the owner of the land for purposes of
the provisions of this section requiring that an organization own
property for the purpose of constructing or rehabilitating a
housing project on the property in order to receive an exemption for
the property. A reference in this section to acquiring property
includes leasing the property as described by this subsection. A
reference in this section to an exemption from taxation or the
appraisal of property means the improvements constructed or
rehabilitated on the property if the property consists of land and
improvements described by this subsection.
SECTION 2. The change in law made by this Act applies only
to an ad valorem tax year that begins on or after the effective date
of this Act.
SECTION 3. This Act takes effect January 1, 2024.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4645 was passed by the House on May 9,
2023, by the following vote: Yeas 88, Nays 54, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4645 was passed by the Senate on May
24, 2023, by the following vote: Yeas 24, Nays 7.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor