HB4650 - Relating to the exemption from ad valorem taxation of property owned by a community land trust or housing finance corporation.

  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.