Res 2002-147 - Laserfiche WebLink

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170. 2002 TML RESOLUTION COVER SHEET Sponsoring Entity: The City of San Marcos Brief Background: Property tax revenues are of critical importance in funding needed local government services. This has been emphasized by the recent leveling off or decline in sales tax revenues for many cities and counties in Texas, and the ongoing debate over public school funding. The removal of properties from the tax rolls must be viewed with concern and skepticism when the revenue streams of local governments are affected. The recent sale of an apartment complex in San Marcos, for example, resulted in the removal of $9,500,000 from the tax rolls and a decrease of over $200,000 per year in property tax revenues to local taxing entities. The transaction was accomplished by two nonprofit corporations formed under Chapter 53 of the Texas Education Code without any notice to the City and without the consent of the City of San Marcos, the local school district, or the county. What the Resolution is Intended to Accomplish: A requirement in state law for consent by all affected taxing entities for real property purchase and financing transactions by nonprofit corporations that result in tax exempt status for property developed, or to be developed, for rental housing. Statewide Importance: The potential exists in communities throughout the state for purchase and financing transactions to occur that result in tax-exempt status for rental housing property without any notice to or consent by local taxing entities. Appropriate changes to state law would allow taxing entities to weigh the benefits of such transactions, and guard against the loss of tax revenues through agreements for payments in lieu of taxes. Submitted by: Name: Robert Habingreither Title: Mayor City: San Marcos Telephone: 512/393-8085