By: Rodriguez (Senate Sponsor - Hinojosa) H.B. No. 3133
(In the Senate - Received from the House May 11, 2011;
May 11, 2011, read first time and referred to Committee on
Intergovernmental Relations; May 21, 2011, reported adversely,
with favorable Committee Substitute by the following vote: Yeas 3,
Nays 0; May 21, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 3133 By: Gallegos
A BILL TO BE ENTITLED
AN ACT
relating to the appraisal for ad valorem tax purposes of property on
which housing is being or has been built or repaired for sale or
rent to a low-income individual or family.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.181(b), Tax Code, is amended to read
as follows:
(b) Property may not be exempted under Subsection (a) after
the fifth anniversary of the date the organization acquires the
property. Property that received an exemption under Section
11.1825 and that was subsequently transferred by the organization
described by that section that qualified for the exemption to an
organization described by this section may not be exempted under
Subsection (a) after the fifth anniversary of the date the
transferring organization acquired the property.
SECTION 2. Section 11.1825, Tax Code, is amended by
amending Subsections (f) and (q) and adding Subsection (p-1) to
read as follows:
(f) For property to be exempt under this section, the
organization must own the property for the purpose of constructing
or rehabilitating a housing project on the property and:
(1) renting the housing, regardless of whether the
housing project consists of multifamily or single-family
dwellings, to individuals or families whose median income is not
more than 60 percent of the greater of:
(A) the area median family income for the
household's place of residence, as adjusted for family size and as
established by the United States Department of Housing and Urban
Development; or
(B) the statewide area median family income, as
adjusted for family size and as established by the United States
Department of Housing and Urban Development; or
(2) selling single-family dwellings to individuals or
families whose median income is not more than the greater of:
(A) the area median family income for the
household's place of residence, as adjusted for family size and as
established by the United States Department of Housing and Urban
Development; or
(B) the statewide area median family income, as
adjusted for family size and as established by the United States
Department of Housing and Urban Development.
(p-1) Notwithstanding the other provisions of this section,
the transfer of property from an organization described by this
section to a nonprofit organization that claims an exemption for
the property under Section 11.181(a) is a proper use of and purpose
for owning the property under this section and does not affect the
eligibility of the property for an exemption under this section.
(q) If property qualifies for an exemption under this
section, the chief appraiser shall use the income method of
appraisal as described [provided] by Section 23.012 to determine
the appraised value of the property. The chief appraiser shall use
that method regardless of whether the chief appraiser considers
that method to be the most appropriate method of appraising 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 rental
income from the property or projecting future rental income; and
(2) use the same capitalization rate that the chief
appraiser uses to appraise other rent-restricted properties.
SECTION 3. Section 23.21, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) In appraising real property that was previously owned by
an organization that received an exemption for the property under
Section 11.181(a) and that was sold to a low-income individual or
family meeting income eligibility standards established by the
organization under regulations or restrictions limiting to a
percentage of the individual's or the family's income the amount
that the individual or family was required to pay for purchasing the
property, the chief appraiser shall take into account the extent to
which that use and limitation and any resale restrictions or
conditions applicable to the property established by the
organization reduce the market value of the property.
SECTION 4. (a) The changes in law made by this Act to
Sections 11.181 and 11.1825, Tax Code, apply to the taxation of real
property beginning with the 2011 tax year.
(b) The change in law made by this Act to Section 23.21, Tax
Code, applies only to an appraisal of real property on or after the
effective date of this Act. An appraisal of real property before the
effective date of this Act is governed by the law in effect
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 5. 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, 2011.
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