79R4118 SMH-F

By:  Talton                                                       H.B. No. 1993



A BILL TO BE ENTITLED

AN ACT

relating to the appraisal for ad valorem tax purposes of certain 
property used to provide low-income housing.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.1825(q), Water Code, is amended to 
read as follows:   
	(q)  If property qualifies for an exemption under this 
section, the chief appraiser shall use the income method of 
appraisal as provided by Section 23.012 to determine the appraised 
value of the property.  In appraising the property, the chief 
appraiser shall:
		(1)  consider the restrictions provided by this section 
on the income of the individuals or families to whom the dwelling 
units of the housing project may be rented and the amount of rent 
that may be charged for purposes of computing the actual rental 
income from the property or projecting future rental income; and
		(2)  use a [the same] capitalization rate of 13.5 
percent [that the chief appraiser uses to appraise other 
rent-restricted properties].
	SECTION 2.  Section 11.1825(r), Tax Code, is repealed.                         
	SECTION 3.  This Act applies only to ad valorem taxes imposed 
for a tax year beginning on or after the effective date of this Act.
	SECTION 4.  This Act takes effect January 1, 2006.