In accordance with state laws, the transit agency in Houston will have to pay property taxes on land it purchased for transit-oriented developments. Because the land will be developed privately, the law says it is not a public use and is not exempt.
"Todd Mason, Metro vice president of real estate services, responded that the project's benefits in increased transit ridership and eventual tax revenue would outweigh costs in taxes or lost interest stemming from the purchase. And if the project falls through, he said, Metro will probably be able to sell the land at a profit."
"Like other governmental bodies, Metro doesn't pay taxes on property it uses for public purposes."
"But land held for private use is taxable, even if Metro owns it temporarily, said County Tax Assessor-Collector Paul Bettencourt and County Appraisal District Chief Appraiser Jim Robinson."
"'The law is very specific that a political subdivision has to hold property for a public purpose (to qualify for the exemption), and I'm not convinced that what they want to do is a public purpose,' Robinson said."
FULL STORY: Metro can't hold proxy tract tax-free, officials say

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