| 1 | 1 | | H.B. No. 4645 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the exemption from ad valorem taxation of certain |
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| 6 | 6 | | property used to provide low-income or moderate-income housing. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 11.1825, Tax Code, is amended by adding |
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| 9 | 9 | | Subsection (a-1) to read as follows: |
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| 10 | 10 | | (a-1) An organization that leases land under a ground lease |
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| 11 | 11 | | is entitled to an exemption from taxation of the improvements owned |
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| 12 | 12 | | by the organization that the organization constructs or |
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| 13 | 13 | | rehabilitates and uses to provide housing to individuals or |
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| 14 | 14 | | families meeting the income eligibility requirements of this |
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| 15 | 15 | | section. An organization that leases land as described by this |
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| 16 | 16 | | subsection is considered to be the owner of the land for purposes of |
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| 17 | 17 | | the provisions of this section requiring that an organization own |
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| 18 | 18 | | property for the purpose of constructing or rehabilitating a |
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| 19 | 19 | | housing project on the property in order to receive an exemption for |
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| 20 | 20 | | the property. A reference in this section to acquiring property |
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| 21 | 21 | | includes leasing the property as described by this subsection. A |
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| 22 | 22 | | reference in this section to an exemption from taxation or the |
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| 23 | 23 | | appraisal of property means the improvements constructed or |
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| 24 | 24 | | rehabilitated on the property if the property consists of land and |
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| 25 | 25 | | improvements described by this subsection. |
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| 26 | 26 | | SECTION 2. The change in law made by this Act applies only |
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| 27 | 27 | | to an ad valorem tax year that begins on or after the effective date |
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| 28 | 28 | | of this Act. |
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| 29 | 29 | | SECTION 3. This Act takes effect January 1, 2024. |
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| 30 | 30 | | ______________________________ ______________________________ |
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| 31 | 31 | | President of the Senate Speaker of the House |
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| 32 | 32 | | I certify that H.B. No. 4645 was passed by the House on May 9, |
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| 33 | 33 | | 2023, by the following vote: Yeas 88, Nays 54, 2 present, not |
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| 34 | 34 | | voting. |
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| 35 | 35 | | ______________________________ |
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| 36 | 36 | | Chief Clerk of the House |
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| 37 | 37 | | I certify that H.B. No. 4645 was passed by the Senate on May |
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| 38 | 38 | | 24, 2023, by the following vote: Yeas 24, Nays 7. |
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| 39 | 39 | | ______________________________ |
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| 40 | 40 | | Secretary of the Senate |
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| 41 | 41 | | APPROVED: _____________________ |
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| 42 | 42 | | Date |
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| 43 | 43 | | _____________________ |
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| 44 | 44 | | Governor |
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