Bill: SB 1931, 85(R) - 2017
Committee
Senate Intergovernmental Relations
Vote Recommendation
| Vote Recommendation |
Economic Freedom |
Property Rights |
Personal Responsibility |
Limited Government |
Individual Liberty |
| No |
Negative |
Neutral |
Neutral |
Negative |
Neutral |
Author(s)
Royce West
Bill Caption
Relating to community land trusts.
Fiscal Notes
Passage of the bill would increase the amount of property that may be eligible for a
community land trust exemption and create appraisal restrictions. As a result, taxable
property values could be reduced and the related costs to the Foundation School Fund could
be increased through the operation of the school finance formulas.
Bill Analysis
Under current law, community land trusts are organized as nonprofit organizations to provide affordable housing for low-income and moderate-income residents in the community. SB 1931 would expand the types of ways a community land trust can be organized; expand the number of tax exemptions related to community land trusts; require the chief-appraiser to use the income method of appraisal for taxes charged to a low-income family that receives housing from a community land trust, regardless of the method preferred by the appraiser; and provide other restrictions on land appraisal for such low-income housing.
Vote Recommendation Notes
This bill infringes on the principles of limited government and the free market by expanding the preferential treatment groups through community land trusts and adjusting taxation in a way that would further distort the market. Providing these kinds of services is within the proper domain of charitable and philanthropic organizations - not special organizations sanctioned by the state and vested with special tax treatment based on the services they provide. For these reasons, we oppose SB 1931.
Organizations Supporting
City of Fort Worth
Texas Association of Builders
Texas Low Income Housing Information Service
