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A BILL TO BE ENTITLED
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AN ACT
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relating to the determination by an appraisal district of the |
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capitalization rate to be used in the appraisal for ad valorem tax |
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purposes of property used for low-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 (r-1) to read as follows: |
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(r-1) An appraisal district shall post on the district's |
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Internet website, if the district maintains an Internet website, |
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the methodology used by the district to develop the capitalization |
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rate proposed to be used in the district for that tax year. The |
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appraisal district may not give notice of the capitalization rate |
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under Subsection (r) until the district has posted the methodology |
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as required by this subsection and provided the public a reasonable |
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opportunity to comment on the methodology's applicability for the |
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territory in which the rate will be used. The methodology used to |
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develop the capitalization rate: |
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(1) may not be based solely on a percentage increase or |
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decrease from the prior tax year's capitalization rate; and |
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(2) must include viable economic metrics for the |
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corresponding market where the rate will be applied. |
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SECTION 2. This Act applies only to an ad valorem tax year |
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that begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2026. |