| 1 | 1 | | 89R5145 JBD-D |
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| 2 | 2 | | By: Morales of Maverick H.B. No. 4650 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the exemption from ad valorem taxation of property |
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| 10 | 10 | | owned by a community land trust or housing finance corporation. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 11.1827, Tax Code, is amended by |
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| 13 | 13 | | amending Subsections (b) and (d) and adding Subsection (g) to read |
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| 14 | 14 | | as follows: |
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| 15 | 15 | | (b) Subject to Subsection (g), in [In] addition to any other |
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| 16 | 16 | | exemption to which the trust may be entitled, a community land trust |
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| 17 | 17 | | is entitled to an exemption from taxation by a taxing unit of land |
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| 18 | 18 | | owned by the trust, together with the housing units located on the |
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| 19 | 19 | | land if they are owned by the trust, if: |
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| 20 | 20 | | (1) the trust: |
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| 21 | 21 | | (A) meets the requirements of a charitable |
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| 22 | 22 | | organization provided by Sections 11.18(e) and (f); |
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| 23 | 23 | | (B) owns the land for the purpose of leasing the |
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| 24 | 24 | | land and selling or leasing the housing units located on the land as |
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| 25 | 25 | | provided by Chapter 373B, Local Government Code; and |
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| 26 | 26 | | (C) engages exclusively in the sale or lease of |
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| 27 | 27 | | housing as described by Paragraph (B) and related activities, |
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| 28 | 28 | | except that the trust may also engage in the development of |
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| 29 | 29 | | low-income and moderate-income housing; and |
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| 30 | 30 | | (2) the exemption is adopted by the governing body of |
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| 31 | 31 | | the taxing unit before July 1 in the manner provided by law for |
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| 32 | 32 | | official action by the body. |
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| 33 | 33 | | (d) Subject to Subsection (g), a [A] community land trust |
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| 34 | 34 | | entitled to an exemption from taxation by a taxing unit under |
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| 35 | 35 | | Subsection (b) is also entitled to an exemption from taxation by the |
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| 36 | 36 | | taxing unit of any real or tangible personal property the trust owns |
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| 37 | 37 | | and uses in the administration of its acquisition, construction, |
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| 38 | 38 | | repair, sale, or leasing of property. To qualify for an exemption |
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| 39 | 39 | | under this subsection, property must be used exclusively by the |
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| 40 | 40 | | trust, except that another person may use the property for |
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| 41 | 41 | | activities incidental to the trust's use that benefit the |
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| 42 | 42 | | beneficiaries of the trust. |
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| 43 | 43 | | (g) A community land trust may receive an exemption under |
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| 44 | 44 | | this section for property owned by the trust only if the property is |
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| 45 | 45 | | located: |
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| 46 | 46 | | (1) in the municipality or county that created or |
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| 47 | 47 | | designated the trust; or |
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| 48 | 48 | | (2) if the commissioners court of the county agrees in |
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| 49 | 49 | | the manner provided by law for official action to allow the |
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| 50 | 50 | | exemption, in a county adjacent to: |
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| 51 | 51 | | (A) the county that created or designated the |
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| 52 | 52 | | trust; or |
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| 53 | 53 | | (B) the county in which the municipality that |
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| 54 | 54 | | created or designated the trust is located. |
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| 55 | 55 | | SECTION 2. Section 394.905, Local Government Code, is |
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| 56 | 56 | | amended to read as follows: |
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| 57 | 57 | | Sec. 394.905. EXEMPTION FROM TAXATION. (a) Subject to |
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| 58 | 58 | | Subsection (c), the [The] housing finance corporation, all property |
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| 59 | 59 | | owned by it, the income from the property, all bonds issued by it, |
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| 60 | 60 | | the income from the bonds, and the transfer of the bonds are exempt, |
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| 61 | 61 | | as public property used for public purposes, from license fees, |
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| 62 | 62 | | recording fees, and all other taxes imposed by this state or any |
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| 63 | 63 | | political subdivision of this state. |
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| 64 | 64 | | (b) The corporation is exempt from the franchise tax imposed |
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| 65 | 65 | | by Chapter 171, Tax Code, only if the corporation is exempted by |
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| 66 | 66 | | that chapter. |
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| 67 | 67 | | (c) The corporation may receive an exemption under this |
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| 68 | 68 | | section for property owned by the corporation only if the property |
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| 69 | 69 | | is located: |
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| 70 | 70 | | (1) in the municipality or county that sponsored the |
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| 71 | 71 | | corporation; or |
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| 72 | 72 | | (2) if the commissioners court of the county agrees in |
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| 73 | 73 | | the manner provided by law for official action to allow the |
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| 74 | 74 | | exemption, in a county adjacent to: |
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| 75 | 75 | | (A) the county that sponsored the corporation; or |
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| 76 | 76 | | (B) the county in which the municipality that |
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| 77 | 77 | | sponsored the corporation is located. |
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| 78 | 78 | | SECTION 3. This Act applies only to ad valorem taxes imposed |
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| 79 | 79 | | for a tax year beginning on or after the effective date of this Act. |
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| 80 | 80 | | SECTION 4. This Act takes effect January 1, 2026. |
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