Amend CSSB 724 by striking all below the enacting clause and 
substituting the following:
	SECTION 1.  Section 23.215, Tax Code, is amended to read as 
follows:         
	Sec. 23.215.  APPRAISAL OF CERTAIN NONEXEMPT PROPERTY USED 
FOR LOW-INCOME OR MODERATE-INCOME HOUSING.  (a)  This section 
applies only to real property [owned by an organization]:
		(1)  that on the effective date of the appraisal [this 
section] was rented to a low-income or moderate-income individual 
or family satisfying the organization's income eligibility 
requirements and that continues to be used for that purpose;
		(2)  that was financed under the low income housing tax 
credit program under Subchapter DD, Chapter 2306, Government Code;
		(3)  that does not receive an exemption under Section 
11.182 or 11.1825; and
		(4)  the owner of which has not entered into an 
agreement with any taxing unit to make payments to the taxing unit 
instead of taxes on the property.
	(b)  The chief appraiser shall use the income method of 
appraisal as provided by Section 23.012 and shall apply a 
capitalization rate as set forth in Subsection (c).
	(c)  The capitalization rate to be used in determining the 
appraised value under this section is at least 13.5 percent unless 
the appraisal district where the property is appraised performs a 
study of capitalization rates based on the sales of comparable 
properties that meet the requirements of Subsection (a) within the 
boundaries of the appraisal district. If the study determines a 
capitalization rate other than 13.5 percent, such capitalization 
rate shall be used. The net operating income capitalized shall be 
inclusive of all property taxes [appraise the property in the 
manner provided by Section 11.1825(q)].
	(d)  Not later than January 31 of each year, the appraisal 
district shall give public notice in a manner determined by the 
district, including posting on the district's website if 
applicable, of the capitalization rate to be used in that year to 
appraise property that meets the requirements of Subsection (a) if 
the rate is other than 13.5 percent.
	(e)  In a study required by Section 403.302, Government Code, 
a property selected for appraisal and meeting the requirements of 
Subsection (a) must be appraised as required under Subsection (c).
	SECTION 2.  This Act applies only to ad valorem taxes imposed 
for a tax year beginning on or after the effective date of this Act.
	SECTION 3.  This Act takes effect January 1, 2006.