The Legislative Budget Board has published a report (PDF) on tax exemptions for Public Facility Corporations. HB 2071 (88R) directed LBB to study ad valorem tax exemptions and sales and use tax exemptions for multifamily residential developments owned by public facility corporations (PFC). LBB staff estimate that the increase in the state share of funding for the Foundation School Program (FSP) due to the ad valorem tax exemption for multifamily residential developments owned by PFCs was $63.4 million during the 2024–25 biennium and the Comptroller of Public Accounts (CPA) estimates that the revenue loss due to state sales and use tax exemptions associated with multifamily residential developments owned by PFCs was $4.5 million during the 2024–25 biennium. According to CPA, repealing the state sales tax exemption for PFC multifamily housing developments would result in no fiscal impact, noting that in addition to provisions in Chapter 303, several provisions in statute and administrative rule provide for a sales and use tax exemption for purchases improving these properties.
For more information, see the LBB’s full report here (PDF).
