By: Rodriguez of Travis H.B. No. 3703
A BILL TO BE ENTITLED
AN ACT
relating to property tax appraisals 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. (a) The legislature finds it would benefit the
State of Texas to:
(1) continue to promote the benefits of non-exempt
affordable housing projects;
(2) ensure owners of non-exempt affordable housing
projects are treated in a consistent manner when their projects are
appraised for local property taxes; and
(3) re-establish the original intent of the
legislature that non-exempt affordable housing projects should be
appraised using the "Income Method" of appraisal.
SECTION 2. Effective September 1, 2013, Section 11.1825,
Property Tax Code, is amended by amending subsection (q) to read as
follows:
(q) If the property qualifies under this section or Section
23.215 [for an exemption under this section], the chief appraiser
shall use the income method [of appraisal] as described 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 income; [and]
(2) use the same capitalization rate that the chief
appraiser uses to appraise other rent-restricted properties[.];
and
(3) determine the property's expenses in accordance
with Section 11.182 (a)(1)(A)(B)(C)(D)(E)(F)(G).
SECTION 3. Effective September 1, 2013, Section 11.182,
Property Tax Code, is amended to read as follows:
Sec. 11.182. COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS
[IMPROVING PROPERTY] AND PROPERTIES FINANCED WITH LOW-INCOME
HOUSING TAX CREDITS FOR LOW-INCOME AND MODERATE-INCOME HOUSING
FAMILIES AND SENIORS.[: PROPERTY PREVIOUSLY EXEMPT.]
SECTION 4. Effective September 1, 2013, Section 11.1825,
Property Tax Code, is amended to read as follows:
Sec. 11.1825. ORGANIZATIONS CONSTRUCTING OR REHABILITATING
LOW-INCOME HOUSING AND PROPERTIES FINANCED WITH LOW-INCOME HOUSING
TAX CREDITS FOR LOW-INCOME AND MODERATE-INCOME HOUSING FOR FAMILIES
AND SENIORS.[: PROPERTY NOT PREVIOUSLY EXEMPT.]
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all 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, 2013.