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A BILL TO BE ENTITLED
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AN ACT
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relating to the ad valorem taxation of certain property used to |
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provide low-income or moderate-income housing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.1825, Tax Code, is amended by adding |
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Subsection (z) to read as follows: |
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(z) An organization may not receive an exemption under this |
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section for property for a tax year beginning on or after January 1, |
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2008, unless the organization received an exemption under this |
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section for that property for any part of the 2007 tax year. |
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SECTION 2. Section 23.215, Tax Code, is amended to read as |
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follows: |
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Sec. 23.215. APPRAISAL OF CERTAIN NONEXEMPT PROPERTY USED |
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FOR LOW-INCOME OR MODERATE-INCOME HOUSING. (a) This section |
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applies only to real property [owned by an organization]: |
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(1) that is [on the effective date of this section was] |
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rented to a low-income or moderate-income individual or family |
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satisfying the organization's income eligibility requirements and |
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that continues to be used for that purpose; |
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(2) that was financed under the low income housing tax |
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credit program under Subchapter DD, Chapter 2306, Government Code; |
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(3) that does not receive an exemption under Section |
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11.182 or 11.1825; and |
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(4) the owner of which has not entered into an |
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agreement with any taxing unit to make payments to the taxing unit |
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instead of taxes on the property. |
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(b) The chief appraiser shall appraise the property |
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according to the income method of appraisal under Section 23.012 |
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using a capitalization rate of at least 13.5 percent, except as |
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provided by Subsection (c). In determining the net operating |
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income produced by the property for purposes of this subsection, |
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the chief appraiser may not deduct the taxes imposed on the property |
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[in the manner provided by Section 11.1825(q)]. |
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(c) The chief appraiser may conduct a study of sales of |
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comparable properties described by Subsection (a) that are located |
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in the appraisal district to determine the appropriate |
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capitalization rate to use in determining the market value of the |
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property. If as a result of the study the chief appraiser |
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determines that a capitalization rate of less than 13.5 percent is |
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more appropriate for that purpose, the chief appraiser shall use |
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that lesser rate. |
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(d) Not later than January 31 of each year, the appraisal |
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district shall give public notice in the manner determined by the |
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district, including by posting on the district's website if |
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applicable, of the capitalization rate to be used in that year to |
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appraise property under this section if that rate is a rate of less |
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than 13.5 percent. |
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(e) In connection with an annual study conducted under |
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Section 403.302, Government Code, the value of a property described |
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by Subsection (a) that is selected for appraisal must be determined |
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in the manner required by this section. |
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SECTION 3. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2008 |
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