10-10-11 Regular Meeting of La Porte City Council

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Texas Property Tax Law Changes 2011 described by this section. Property may not be exempted under subsection (a) after the fifth anniversary of the date on which the transferring organization acquired the property. Effeetive June 17, 2011, but applies to the taxation ofrealproperty beginning with the 2011 tax year. Section 11.1825 HB 3133 amends subsection (f) to provide that an exemption under this section may be granted for multifamily and single - family housing. The bill adds subsection (p -1) to provide that the transfer of property from an organization described by this section to a nonprofit organization that claims an exemption for the prop- erty under Section 11.181(a) is a proper use of and purpose for owning the property under this section. The bill amends subsection (q) to require the chief appraiser to use the income method of appraisal described by Section 23.012 regardless of whether the chief appraiser considers that method to be the most appropriate method. Effeetive June 17, 2011, but applies to the taxation ofrealproperty beginning with the 2011 tax year. HB 2702 amends subsection (s) and (v) to increase the popula- tion minimums to 1.8 million (formerly 1.4 million). Effective September 1, 2011. Section 11.1827 SB 402 adds this section to provide a local option property tax exemption for land owned by a community land trust created or designated under Local Government Code Section 373B.002, to- gether with housing units located on the land if the units are owned by the trust. The exemption must be adopted by the governing body of the taxing unit before July 1. To receive the exemption, the trust must meet certain requirements of a charitable organization under Sections 11.18 (e) and (f); own the land for the purpose of leasing it and selling or leasing housing units located on the land; and engage exclusively in the sale or lease of housing as provided in this section. This property cannot be exempted after the third anniversary of the date on which the trust acquires the property unless the trust is offering to sell or lease or is leasing the property as provided by Local Government Code 373B. The section also provides a property tax exemption for any real or tangible personal property the trust owns and uses in the administration of its acquisition, construction, repair, sale or leasing of property. This property must be used exclusively by the trust, except for use by persons for activities incidental to the trust's use that benefit the beneficiaries of the trust. To receive an exemption, a trust must have an annual inde- pendent audit with specified information and send that audit to specified local governments and the chief appraiser within a certain time period. Effective January 1, 2012, but applies only to ad valorem taxes imposed for a tax year beginning on or after the effective date. SB 1 (1st CS) amends subdivision (a)(2) to modify the definition of "goods -in- transit" to mean tangible personal property stored under a contract of bailment by a public warehouse operator at one or more public warehouses that are not in any way owned or con- trolled by the owner of the personal property, rather than prohibit- ing direct or indirect ownership interest. The terms "assembling," "manufacturing" "processing" and "fabricating," are deleted from the definition as acceptable activities to qualify for the exemption. The bill adds subdivision (a)(5) and (a)(6) to create the defini- tions for "bailee" and "warehouse," assigning the same mean- ings as in Business and Commerce Code Section 7.102, and defines "public warehouse operator" to mean a person who is both a bailee and a warehouse owner and stores tangible per- sonal property owned by other persons solely for their account and not for the operator's account. The bill modifies subsection (e) and (h) to make conforming changes. To tax personal property that would otherwise qualify for the "goods -in- transit" exemption, the bill adds subsection (j -1) to require taxing units to take official action on or after October 1, 2011 after holding a public hearing. Official action to tax the property must be taken before January 1 of the first tax year in which the governing body proposes to tax the property. If such official action is taken, the property remains subject to taxation by that taxing unit until the unit by official action rescinds or repeals its previous action to tax the property. Subsection (j -2) is added to allow taxing units to continue to tax "goods -in- transit" if the taxing unit took action to tax the property before October 1, 2011 and pledged those taxes to the payment of debt until the debt is discharged. Effective January 1, 2012, but applies only to an ad valorem tax year that begins on or after January 1, 2012, except fbr provisions ( -1) and ( - 2) relating to taxing units taking official action to tax goods -in- transit which are effective October 1, 2011. Section 11.31 HB 2280 amends subsection (n) to require that at least one member of the advisory committee that advises TCEQ regard- ing determinations related to pollution control property tax exemptions be a representative of a school district or junior col- lege district in which property is located that is or was subject to an exemption under this section. Effective June 17, 2011. SB 201 adds subsection (e) to allow a person who qualifies for the 100 percent or totally disabled veteran exemption under Section 11.131 after January 1 of a tax year to receive the ex- emption for the applicable portion of that tax year immediately on qualification for the exemption. Effective January 1, 2012, but applies only to an ad valorem tax year that begins on or after the effective date. Texas Comptroller of PublicAccouras • Property Tax Assistance Division 5