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A BILL TO BE ENTITLED
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AN ACT
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relating to the appraisal for ad valorem tax purposes of a housing |
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unit that the owner or a predecessor of the owner acquired from a |
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community land trust. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.21(d), Tax Code, is amended to read as |
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follows: |
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(d) In appraising a housing unit that the owner or a |
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predecessor of the owner acquired from a community land trust |
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created or designated under Section 373B.002, Local Government |
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Code, and that is located on land owned by the trust and leased by |
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the owner of the housing unit, the chief appraiser shall take into |
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account the extent to which any regulations or restrictions |
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limiting the right of the owner of the housing unit to sell the |
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housing unit, including any limitation on the price for which the |
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housing unit may be sold, reduce the market value of the housing |
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unit. If the sale of the housing unit is subject to an eligible land |
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use restriction, the chief appraiser may not appraise the housing |
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unit in a tax year for an amount that exceeds the price for which the |
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housing unit may be sold under the eligible land use restriction in |
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that tax year. For purposes of this subsection, "eligible land use |
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restriction" means an agreement or restrictive covenant applicable |
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to a housing unit that: |
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(1) is recorded in the real property records; |
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(2) has a term of at least 40 years; |
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(3) restricts the price for which the housing unit may |
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be sold to a price that is or may be less than the market value of |
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the housing unit; and |
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(4) restricts the sale of the housing unit to a family |
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meeting the income-eligibility standards established by Section |
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373B.006, Local Government Code. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2019. |