89R5145 JBD-D
By: Morales of Maverick H.B. No. 4650
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of property
owned by a community land trust or housing finance corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.1827, Tax Code, is amended by
amending Subsections (b) and (d) and adding Subsection (g) to read
as follows:
(b) Subject to Subsection (g), in [In] addition to any other
exemption to which the trust may be entitled, a community land trust
is entitled to an exemption from taxation by a taxing unit of land
owned by the trust, together with the housing units located on the
land if they are owned by the trust, if:
(1) the trust:
(A) meets the requirements of a charitable
organization provided by Sections 11.18(e) and (f);
(B) owns the land for the purpose of leasing the
land and selling or leasing the housing units located on the land as
provided by Chapter 373B, Local Government Code; and
(C) engages exclusively in the sale or lease of
housing as described by Paragraph (B) and related activities,
except that the trust may also engage in the development of
low-income and moderate-income housing; and
(2) the exemption is adopted by the governing body of
the taxing unit before July 1 in the manner provided by law for
official action by the body.
(d) Subject to Subsection (g), a [A] community land trust
entitled to an exemption from taxation by a taxing unit under
Subsection (b) is also entitled to an exemption from taxation by the
taxing unit of any real or tangible personal property the trust owns
and uses in the administration of its acquisition, construction,
repair, sale, or leasing of property. To qualify for an exemption
under this subsection, property must be used exclusively by the
trust, except that another person may use the property for
activities incidental to the trust's use that benefit the
beneficiaries of the trust.
(g) A community land trust may receive an exemption under
this section for property owned by the trust only if the property is
located:
(1) in the municipality or county that created or
designated the trust; or
(2) if the commissioners court of the county agrees in
the manner provided by law for official action to allow the
exemption, in a county adjacent to:
(A) the county that created or designated the
trust; or
(B) the county in which the municipality that
created or designated the trust is located.
SECTION 2. Section 394.905, Local Government Code, is
amended to read as follows:
Sec. 394.905. EXEMPTION FROM TAXATION. (a) Subject to
Subsection (c), the [The] housing finance corporation, all property
owned by it, the income from the property, all bonds issued by it,
the income from the bonds, and the transfer of the bonds are exempt,
as public property used for public purposes, from license fees,
recording fees, and all other taxes imposed by this state or any
political subdivision of this state.
(b) The corporation is exempt from the franchise tax imposed
by Chapter 171, Tax Code, only if the corporation is exempted by
that chapter.
(c) The corporation may receive an exemption under this
section for property owned by the corporation only if the property
is located:
(1) in the municipality or county that sponsored the
corporation; or
(2) if the commissioners court of the county agrees in
the manner provided by law for official action to allow the
exemption, in a county adjacent to:
(A) the county that sponsored the corporation; or
(B) the county in which the municipality that
sponsored the corporation is located.
SECTION 3. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2026.