| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the appraisal for ad valorem tax purposes of certain |
|
|
nonexempt property used for 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) for the purpose of renting the property [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 is [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 described by Section 23.012 to appraise the property, |
|
|
regardless of whether the chief appraiser considers that method to |
|
|
be the most appropriate method of appraising the property [in the
|
|
|
manner provided by Section 11.1825(q)]. In using the income method |
|
|
to appraise the property, the chief appraiser shall: |
|
|
(1) use information contained in the most recent |
|
|
annual owner's compliance report filed by the organization that |
|
|
owns the property with the Texas Department of Housing and |
|
|
Community Affairs to: |
|
|
(A) estimate the property's gross income |
|
|
potential and operating expenses; and |
|
|
(B) make projections relating to the property's |
|
|
future operating expenses; and |
|
|
(2) make projections relating to the property's future |
|
|
rent or income potential using the maximum amount of rent that is |
|
|
permitted to be charged for the property, as established by the |
|
|
United States Department of Housing and Urban Development. |
|
|
(c) The chief appraiser shall appraise property in the |
|
|
manner provided by this section regardless of whether, on January 1 |
|
|
of the tax year in which the property is appraised: |
|
|
(1) the property is no longer under active |
|
|
construction; and |
|
|
(2) the occupancy of the property has stabilized. |
|
|
(d) For purposes of this section, a property's operating |
|
|
expenses include: |
|
|
(1) standard property maintenance; |
|
|
(2) debt service; |
|
|
(3) employee compensation; |
|
|
(4) fees required by government agencies; |
|
|
(5) expenses incurred in satisfying the requirements |
|
|
of lenders, including reserve requirements; |
|
|
(6) insurance; and |
|
|
(7) other justifiable expenses related to the |
|
|
property's operation and maintenance. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to an ad valorem tax year that begins on or after January 1, 2018. |
|
|
SECTION 3. This Act takes effect January 1, 2018. |