According to the county, the SH 130 Municipal Management District out of Travis County sponsored the creation of the Texas Essential Housing Public Finance Corp. After the PFC received a 15-acre piece of land in Jarrell, transferred from development group Z Modular, the property was leased back to the company for 99 years. The PFC then filed an application with the Williamson County Appraisal District, claiming a 100% tax exemption on the property.
County officials are questioning the authority of a municipal management district from another county to receive tax breaks on property acquired outside of its jurisdiction.
“This is something that if Travis County wants to allow this and that’s where it originated, perfectly fine,” Precinct 3 Commissioner Valerie Covey. “Not saying that it needs to go away completely, just saying it doesn’t apply to any other county because without the city, the school or the county voting on an item, a property could become tax exempt just by this company buying it.”
The court’s conversation follows a supplemental brief it authorized in November supporting a request from state Sen. Paul Bettencourt, R-Houston, for the office of the Texas attorney general to look into whether it is legal for private developers to receive property tax exemptions without the approval of local taxing entities.
According to the Williamson County Appraisal District, the value of the 15-acre parcel as of 2022 was $982,060. Precinct 4 Commissioner Russ Boles said an $8 million apartment complex planned for the land could have a “devastating” result on Jarrell ISD in addition to costing the county additional services to meet the demand of new units.
“By state law, the school district has to respond,” Bole said. “They have to have the space, enough teachers, curriculum—a whole variety of things, and they’re receiving no taxes for what they’re required to do by state law.”
Williamson County Judge Bill Gravell said he has worked with County Attorney Charlie Crossfield to develop language addressing the court’s concerns, adding he asked lawmakers to pursue legislation centered around it.
“I think it’s something the county should engage in,” he said.
In an email to Community Impact, PFC President Aundre Dukes said charter schools, churches, the YMCA and many other nonprofits qualify for the same tax exemptions without them being challenged.
“The tax assessor could simply deny the exemption if what we’re doing didn’t comply with the law, but we are in compliance," Dukes said.
