|
|
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 |
|
amending Subsections (q) and (r) and adding Subsections (q-1), |
|
(q-2), (r-1), and (r-2) to read as follows: |
|
(q) If property qualifies for an exemption under this |
|
section, the appraised value of the property is equal to the greater |
|
of: |
|
(1) the amount determined using the cost method of |
|
appraisal under Section 23.011; or |
|
(2) the amount determined using the income method of |
|
appraisal under Section 23.012. |
|
(q-1) In determining the appraised value of property that |
|
qualifies for an exemption under this section using the cost method |
|
of appraisal, the chief appraiser shall consider only data |
|
pertaining to the cost of the land on which a housing project is |
|
located and may not consider data pertaining to the cost of any |
|
structure located on the land. |
|
(q-2) In determining the appraised value of property that |
|
qualifies for an exemption under this section using the income |
|
method of appraisal [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 net |
|
operating [rental] income from the property [or projecting future
|
|
rental income]; [and] |
|
(2) use the actual net operating income from the |
|
property; and |
|
(3) use a [the same] capitalization rate of at least |
|
13.5 percent, except as provided by Subsection (r-1) [that the
|
|
chief appraiser uses to appraise other rent-restricted
|
|
properties]. |
|
(r) For purposes of this section, "actual net operating |
|
income" means the actual income from property less the actual |
|
expenses incurred that are specific to the property, including |
|
compliance monitoring fees and operating and replacement reserves |
|
but not including the taxes imposed on the property [Not later than
|
|
January 31 of each year, the appraisal district shall give public
|
|
notice in the 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 receiving an exemption
|
|
under this section]. |
|
(r-1) The chief appraiser may conduct a study of sales of |
|
comparable properties 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. |
|
(r-2) Not later than January 31 of each year, the chief |
|
appraiser shall give public notice in the manner determined by the |
|
appraisal 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. |
|
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: |
|
(1) real property that [owned by an organization]: |
|
(A) [(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; |
|
(B) [(3)that] does not receive an exemption |
|
under Section 11.182 or 11.1825; and |
|
(C) is owned by an organization that [(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; or |
|
(2) real property that meets the following |
|
requirements: |
|
(A) the property is owned by an organization for |
|
the purpose of constructing or rehabilitating a housing project on |
|
the property and: |
|
(i) renting the housing to individuals or |
|
families described by Section 11.1825(f)(1); or |
|
(ii) selling single-family dwellings to |
|
individuals or families described by Section 11.1825(f)(2); |
|
(B) at least 50 percent of the total square |
|
footage of the dwelling units in the housing project is reserved for |
|
individuals or families described by Section 11.1825(f); and |
|
(C) the property does not receive an exemption |
|
under Section 11.1825. |
|
(b) The chief appraiser shall appraise the property in the |
|
manner provided by Sections [Section] 11.1825(q), (q-1), and (q-2). |
|
SECTION 3. (a) This Act applies only to ad valorem taxes |
|
imposed for a tax year beginning on or after January 1, 2007. |
|
(b) As soon as practicable after this Act takes effect, a |
|
chief appraiser shall reappraise property for the 2007 tax year |
|
that was appraised before the effective date of this Act if a change |
|
in law made by this Act affects the appraised value of the property. |
|
SECTION 4. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect September 1, 2007. |