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HB 4750

Relating to the exemption from ad valorem taxation of property of certain charitable organizations that provide housing on a cooperative basis.

89th Legislature (2025) Introduced by Rafael Anchía

HB 4750 exempts cooperative-basis charitable housing properties from Texas ad valorem taxation, reducing local tax revenue while potentially expanding affordable housing options.

Referred to Ways & Means
#charitable&nonprofitorganizations(i0055) #housing--general(i0405) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 4750

Legislative bill overview

HB 4750 would expand property tax exemptions for charitable organizations that provide housing through cooperative arrangements in Texas. The bill specifically targets organizations offering cooperative-basis housing, allowing them to avoid ad valorem (property value-based) taxation on qualifying properties used for this charitable purpose.

Why is this important

Housing affordability is a significant challenge in Texas, and property tax exemptions reduce operational costs for nonprofits, potentially allowing them to offer more affordable housing options. This exemption could incentivize the development of cooperative housing models while reducing local tax revenue that typically funds schools, counties, and municipalities.

Potential points of contention

  • Local revenue impact: Property tax exemptions reduce funding available to school districts and local governments that depend on ad valorem tax collections, potentially shifting costs to other taxpayers or limiting public services
  • Definition clarity: "Cooperative basis" housing requires precise legal definition to prevent misuse; ambiguous language could allow unintended organizations to claim exemptions or create disputes over qualification
  • Equity concerns: Tax exemptions for specific housing models may benefit certain charitable organizations over others, raising questions about fairness and whether public subsidy (through foregone taxes) is the most effective affordable housing strategy

Compiled from official sources — confirm details with the bill’s official record.

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