80R946 SMH-F
 
  By: Talton H.B. No. 235
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the ad valorem taxation 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 11.1825, Tax Code, is amended by adding
Subsection (z) to read as follows:
       (z)  An organization may not receive an exemption under this
section for property for a tax year beginning on or after January 1,
2008, unless the organization received an exemption under this
section for that property for any part of the 2007 tax year.
       SECTION 2.  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 is [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 appraise the property
according to the income method of appraisal under Section 23.012
using a capitalization rate of at least 13.5 percent, except as
provided by Subsection (c). In determining the net operating
income produced by the property for purposes of this subsection,
the chief appraiser may not deduct the taxes imposed on the property
[in the manner provided by Section 11.1825(q)].
       (c)  The chief appraiser may conduct a study of sales of
comparable properties described by Subsection (a) that are located
in the appraisal district to determine the appropriate
capitalization rate to use in determining the market value of the
property. If as a result of the study the chief appraiser
determines that a capitalization rate of less than 13.5 percent is
more appropriate for that purpose, the chief appraiser shall use
that lesser rate.
       (d)  Not later than January 31 of each year, the appraisal
district shall give public notice in the manner determined by the
district, including by posting on the district's website if
applicable, of the capitalization rate to be used in that year to
appraise property under this section if that rate is a rate of less
than 13.5 percent.
       (e)  In connection with an annual study conducted under
Section 403.302, Government Code, the value of a property described
by Subsection (a) that is selected for appraisal must be determined
in the manner required by this section.
       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, 2008
.