Public Facility Corporations and the Section 303.042(f) Tax Break for Apartment Developments

This report examines the 100% property tax exemption available for apartment developments through a special type of public facility corporation structure under Section 303.042(f) of the Texas Local Government Code. While the exemption received little notice when it was adopted by the Texas Legislature in 2015, the use of this exemption is rapidly growing and delivering annual property tax breaks to apartment developers of close to $1 million per property on average.