Bill Text: TX HB1548 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the exemption from ad valorem taxation by a school district of certain property used to build low-income or moderate-income housing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-04-20 - Meeting cancelled [HB1548 Detail]
Download: Texas-2017-HB1548-Introduced.html
85R2215 TJB-F | ||
By: Dutton | H.B. No. 1548 |
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relating to the exemption from ad valorem taxation by a school | ||
district of certain property used to build low-income or | ||
moderate-income housing. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by | ||
adding Section 11.1828 to read as follows: | ||
Sec. 11.1828. LOW-INCOME AND MODERATE-INCOME HOUSING NEAR | ||
SCHOOL. (a) In this section: | ||
(1) "Area median income" means the area median income | ||
as determined by the Texas Department of Housing and Community | ||
Affairs under Section 2306.123, Government Code. | ||
(2) "Rural area" and "urban area" have the meanings | ||
assigned by Section 2306.004, Government Code. | ||
(b) A person is entitled to an exemption from taxation by a | ||
school district of improved and unimproved real property, any part | ||
of which is located within a one-mile radius of the center of a | ||
campus of that school district that the person owns for the purpose | ||
of building: | ||
(1) in an urban area: | ||
(A) 25 or more new single-family dwellings to be | ||
sold or leased to individuals or families earning not more than 60 | ||
percent of the area median income; or | ||
(B) a new multifamily housing project consisting | ||
of 150 or more dwelling units to be rented to individuals or | ||
families earning not more than 60 percent of the area median income; | ||
or | ||
(2) in a rural area: | ||
(A) 10 or more new single-family dwellings to be | ||
sold or leased to individuals or families earning not more than 60 | ||
percent of the area median income; or | ||
(B) a new multifamily housing project consisting | ||
of 60 or more dwelling units to be rented to individuals or families | ||
earning not more than 60 percent of the area median income. | ||
(c) Property may not be exempted from taxation under this | ||
section after the third anniversary of the date the person acquires | ||
the property. | ||
(d) The chief appraiser of the appraisal district in which | ||
property exempted from taxation under this section is located shall | ||
determine the market value of the property each tax year and shall | ||
record that value in the appraisal records for that tax year. | ||
(e) If the person who owns property exempted from taxation | ||
under this section sells, leases, or rents any part of the property | ||
to an individual or family who does not satisfy the applicable | ||
eligibility requirements prescribed by Subsection (b)(1) or (2), a | ||
penalty is imposed on the property equal to the amount of the taxes | ||
that would have been imposed on the property in each tax year that | ||
the property was exempted from taxation, plus interest at an annual | ||
rate of seven percent calculated from the dates on which the taxes | ||
would have become due. | ||
(f) If the penalty prescribed by Subsection (e) is imposed | ||
on property because the property is sold to a person who does not | ||
satisfy the applicable eligibility requirements of Subsection | ||
(b)(1)(A) or (2)(A), the person who received the exemption under | ||
this section for the property and the purchaser of the property are | ||
jointly and severally liable for the penalty and interest. A tax | ||
lien in favor of the school district for which the penalty is | ||
imposed attaches to the property to secure payment of the penalty | ||
and interest. | ||
(g) The chief appraiser shall make an entry in the appraisal | ||
records for the property against which a penalty is imposed under | ||
Subsection (e) and shall deliver written notice of the imposition | ||
of the penalty and interest to the persons who are jointly and | ||
severally liable for that penalty and interest. | ||
SECTION 2. Section 11.436(a), Tax Code, is amended to read | ||
as follows: | ||
(a) A person who [ |
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that qualifies for an exemption under Section 11.181(a), [ |
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11.1825, or 11.1828 may apply for the exemption for the year of | ||
acquisition not later than the 30th day after the date the person | ||
[ |
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Section 11.43(d) does not apply to the application for that year. | ||
SECTION 3. The heading to Section 26.111, Tax Code, is | ||
amended to read as follows: | ||
Sec. 26.111. PRORATING TAXES--ACQUISITION BY PERSON FOR | ||
LOW-INCOME AND MODERATE-INCOME HOUSING PROJECTS [ |
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SECTION 4. Section 26.111(a), Tax Code, is amended to read | ||
as follows: | ||
(a) If a person [ |
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that qualifies for and is granted an exemption under Section | ||
11.181(a), [ |
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property was acquired, the amount of tax due on the property for | ||
that year is calculated by multiplying the amount of taxes imposed | ||
on the property for the entire year as provided by Section 26.09 by | ||
a fraction, the denominator of which is 365 and the numerator of | ||
which is the number of days in that year before the date the person | ||
[ |
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SECTION 5. This Act applies only to an ad valorem tax year | ||
that begins on or after the effective date of this Act. | ||
SECTION 6. This Act takes effect January 1, 2018, but only | ||
if the constitutional amendment proposed by the 85th Legislature, | ||
Regular Session, 2017, authorizing the legislature to exempt from | ||
ad valorem taxation by one or more political subdivisions of this | ||
state property located near a public school that is owned for the | ||
purpose of building low-income or moderate-income housing is | ||
approved by the voters. If that amendment is not approved by the | ||
voters, this Act has no effect. |