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A BILL TO BE ENTITLED
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AN ACT
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relating to property tax appraisals of certain nonexempt property |
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used for 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. (a) The legislature finds it would benefit the |
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State of Texas to: |
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(1) continue to promote the benefits of non-exempt |
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affordable housing projects; |
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(2) ensure owners of non-exempt affordable housing |
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projects are treated in a consistent manner when their projects are |
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appraised for local property taxes; and |
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(3) re-establish the original intent of the |
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legislature that non-exempt affordable housing projects should be |
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appraised using the "Income Method" of appraisal. |
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SECTION 2. Effective September 1, 2013, Section 11.1825, |
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Property Tax Code, is amended by amending subsection (q) to read as |
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follows: |
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(q) If the property qualifies under this section or Section |
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23.215 [for an exemption under this section], the chief appraiser |
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shall use the income method [of appraisal] as described by Section |
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23.012 to determine the appraised value of the property. The chief |
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appraiser shall use that method regardless of whether the chief |
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appraiser considers that method to be the most appropriate method |
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of appraising the property. In appraising the property, the chief |
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appraiser shall: |
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(1) consider the restrictions provided by this section |
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on the income of the individuals or families to whom the dwelling |
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units of the housing project may be rented and the amount of rent |
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that may be charged for purposes of computing the actual rental |
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income from the property or projecting future income; [and] |
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(2) use the same capitalization rate that the chief |
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appraiser uses to appraise other rent-restricted properties[.]; |
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and |
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(3) determine the property's expenses in accordance |
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with Section 11.182 (a)(1)(A)(B)(C)(D)(E)(F)(G). |
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SECTION 3. Effective September 1, 2013, Section 11.182, |
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Property Tax Code, is amended to read as follows: |
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Sec. 11.182. COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS |
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[IMPROVING PROPERTY] AND PROPERTIES FINANCED WITH LOW-INCOME |
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HOUSING TAX CREDITS FOR LOW-INCOME AND MODERATE-INCOME HOUSING |
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FAMILIES AND SENIORS.[: PROPERTY PREVIOUSLY EXEMPT.] |
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SECTION 4. Effective September 1, 2013, Section 11.1825, |
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Property Tax Code, is amended to read as follows: |
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Sec. 11.1825. ORGANIZATIONS CONSTRUCTING OR REHABILITATING |
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LOW-INCOME HOUSING AND PROPERTIES FINANCED WITH LOW-INCOME HOUSING |
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TAX CREDITS FOR LOW-INCOME AND MODERATE-INCOME HOUSING FOR FAMILIES |
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AND SENIORS.[: PROPERTY NOT PREVIOUSLY EXEMPT.] |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |