By: Lucio S.B. No. 724
(In the Senate - Filed February 24, 2005; March 2, 2005,
read first time and referred to Committee on Intergovernmental
Relations; May 2, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
May 2, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 724 By: Gallegos
A BILL TO BE ENTITLED
AN ACT
relating to the appraisal for ad valorem tax purposes of certain
property used to provide low-income or moderate-income housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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 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 computed by adding eight
percentage points to the prime rate as published in The Wall Street
Journal on the first day of each calendar year that is not a
Saturday, Sunday, or legal holiday. 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) The use of the appraised value determined by this
section shall be the market value of the property subject to appeal
for the purpose of any study under Section 403.302, Government
Code.
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.
* * * * *