By Gray H.B. No. 2992
77R9232 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the income method of appraisal for property tax
1-3 purposes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 23.012, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 23.012. Income Method of Appraisal. If the chief
1-8 appraiser uses the income method of appraisal to determine the
1-9 market value of real property, the chief appraiser shall:
1-10 (1) use [rental] income and expense data pertaining to
1-11 the property if possible and applicable;
1-12 (2) make any projections of future [rental] income and
1-13 expenses only from clear and appropriate evidence;
1-14 (3) use data from generally accepted sources in
1-15 determining an appropriate capitalization rate; and
1-16 (4) determine a capitalization rate for
1-17 income-producing property that includes a reasonable return on
1-18 investment, taking into account the risk associated with the
1-19 investment.
1-20 SECTION 2. EFFECTIVE DATE. This Act takes effect immediately
1-21 if it receives a vote of two-thirds of all the members elected to
1-22 each house, as provided by Section 39, Article III, Texas
1-23 Constitution. If this Act does not receive the vote necessary for
1-24 immediate effect, this Act takes effect September 1, 2001.