HomeMy WebLinkAboutOrdinance 11283~~*~"""y ~~5,
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ORDINANCE NO ~/~
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH EXEMPTING FROM AD VALOREM TAXES RESIDENTIAL
PROPERTY OWNED BY THE UNITED STATES OR AN AGENCY OF
THE UNITED STATES AND USED TO PROVIDE TRANSITIONAL
HOUSING FOR THE INDIGENT UNDER A PROGRAM OPERATED
OR DIRECTED BY THE UNITED STATES DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT; PROVIDING A
SEVERABILITY CLAUSE, AND DECLARING AN EFFECTIVE
DATE.
WHEREAS, Section 11 111 of the State Property Tax Code permits
a city to exempt from ad valorem taxes property owned by the
United States or an agency of the United States and used to
provide transitional housing for the indigent;
WHEREAS, the City Council of the City of Fort Worth desires to
exempt said property pursuant to the provisions of Section 11 111
of the State Properly Tax Code;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS.
SECTION 1
There is hereby exempted from ad valorem taxes residential property owned by the United
States or an agency of the United States and used to provide transitional housing for the
indigent under a program operated or directed by the United States-Departrnent of Housing and
Urban Development. The exemption is established pursuant to the provisions of Section
11 111 of the State Property Tax Code or any successor statute.
SECTION 2.
Should any portion, section or ppart of a section of this ordinance be declared invalid,
inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion
or iudgrnent shall in no way impair the remaining portions, sections, or parts of sections of this
ordinance, which said remaining provisions shall be and remain in full force and effect.
SECTION 3.
This ordinance shall take effect for the 1994 and following tax years and be in full force and
effect from and after the date of its passage, and it is so ordained.
APPROVED AS TO FORM AND LEGALITY
Off~CIA1 RECORD
CITY SECRET,~RY
fT. WORTH, TEX.
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03/23/93 REFERENCE NUMBER
G-10102 LOG NAME
13ADVAL PAGE
1 of 1
SUBJECT PROPERTY TAX EXEMPTION FOR TRANSITIONAL HOUSING FOR THE INDIGENT
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance exempting from ad
valorem taxation residential property owned by the United States or an agency of the
United States and used to provide transitional housing for the indigent under a program
operated or directed by the U. S. Department of Housing and Urban Development.
DISCUSSION:
Ad Valorem Tax Exemption Policies and Practices, was presented at
An Informal Report
,
the March 16, 1993, Pre-Council meeting. At that time, the staff indicated it would
recommend approval of an exemption from ad valorem taxes for transitional housing for
indigent persons.
In partnership with HUD, the Community Enrichment Center, a non-profit corporation in
Northeast Tarrant County, provides a comprehensive transitional housing program for
Tarrant County homeless families. Numerous community organizations, churches, and
businesses participate in the program aimed at giving families the opportunity for
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decent, affordable housing and to work up and out of poverty into the mainstream o
American life.
Under state law, if this exemption is adopted before May 1, 1993, the earliest it would
become effective is January 1, 1994. HUD could make application to the Tarrant
Appraisal District before April 30, 1994 to have qualified properties exempted. The
exemption would affect the 1994 tax roll and the City's FY 1994-95 budget.
FISCAL INFORMATION/CERTIFICATION:
In 1992, the program leased 60 properties from HUD for $1.00/year and paid property
taxes in excess of $88,000.00 to 29 separate taxing jurisdictions. In 1993, the
program expects to add 72 new leases and pay, in the absence of any exemptions, almost
$210,000.00 in property taxes. In 1992., 14 of the leased properties were in Fort
Worth. Assuming an average value of $51,890.00, the tax revenue lost in 1992 - if the
exemption had been allowed -would have been $6,901.00. Assuming another 20 properties
are leased in 1993, with an average value of $51,890.00, the tax revenue loss for the
year from this exemption would be $16,760.00 It is unlikely that the loss of tax
revenue in 1994, the year the exemption would become effective, would exceed
$20,000.00.
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Su fitted or City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by to
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James Keyes 8517 CITY ~QUNCIL
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Charles Boswell 8500
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