Bill Text: TX HB2000 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to taxation of property owned or controlled by a public facility corporation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-07 - Referred to Ways & Means [HB2000 Detail]
Download: Texas-2011-HB2000-Introduced.html
82R9328 ATP-D | ||
By: Garza | H.B. No. 2000 |
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relating to taxation of property owned or controlled by a public | ||
facility corporation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 303.042, Local Government Code, is | ||
amended by amending Subsections (c) and (d) and adding Subsections | ||
(c-1), (c-2), (f), and (g) to read as follows: | ||
(c) A corporation is engaged exclusively in the performance | ||
of charitable functions and the corporation and property owned by | ||
the corporation are [ |
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municipality or other political subdivision of this state. Bonds | ||
issued by a corporation under this chapter, a transfer of the bonds, | ||
interest on the bonds, and a profit from the sale or exchange of the | ||
bonds are exempt from taxation by this state or a municipality or | ||
other political subdivision of this state. | ||
(c-1) The legal owner of property that is not a corporation | ||
created under this chapter is exempt from property taxation with | ||
respect to that property if: | ||
(1) the corporation owns 100 percent of the legal | ||
owner of the property; or | ||
(2) the legal owner of the property is exclusively | ||
controlled by the corporation and: | ||
(A) is organized under the laws of this state; | ||
(B) has its principal place of business in this | ||
state; and | ||
(C) has equitable title to the property. | ||
(c-2) Property described by Subsection (c) is exempt from | ||
taxation under that subsection if the property is owned by a tax | ||
credit partnership or limited liability company and the general | ||
partner or member, as applicable, is or is controlled by a public | ||
facility corporation holding equitable title to the property under | ||
an option to acquire the property on terms negotiated between the | ||
parties to the option agreement. | ||
(d) An exemption under this section for a multifamily | ||
residential development which is owned by a public facility | ||
corporation created by a housing authority under this chapter and | ||
which does not have at least 20 percent of its units reserved for | ||
public housing units, applies only if: | ||
(1) the housing authority holds a public hearing, at a | ||
regular meeting of the authority's governing body, to approve the | ||
development; and | ||
(2) at least 50 percent of the units in the multifamily | ||
residential development are reserved for occupancy by individuals | ||
and families earning less than 60 [ |
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family income. | ||
(f) For purposes of this section, the following are | ||
considered to own property: | ||
(1) persons with legal title to property; and | ||
(2) persons with equitable title to property, | ||
established by the present right to compel the conveyance of legal | ||
title to the property in accordance with the law of this state, | ||
including by having an option to acquire the property. | ||
(g) For purposes of this section, a person is considered to | ||
control another if the person has the power to manage, direct, | ||
superintend, restrict, regulate, govern, administer, or oversee | ||
the other person. A corporation is considered to control a limited | ||
partnership only if the corporation directly or through a wholly | ||
owned subsidiary controls 100 percent of the general partner | ||
interest. A corporation is considered to control a limited | ||
liability company only if the corporation is the sole manager or | ||
managing member of the company. | ||
SECTION 2. This Act takes effect January 1, 2012. |