| 1 | 1 | | 84R12152 CBH-D |
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| 2 | 2 | | By: Coleman H.B. No. 2663 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the treatment for ad valorem tax purposes of real |
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| 8 | 8 | | property used for certain low-income or moderate-income housing. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 11.1825(s-1), Tax Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (s-1) The [For property described by Subsection (f)(2), |
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| 13 | 13 | | the] amount of the exemption under this section from taxation is 100 |
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| 14 | 14 | | percent of the appraised value of the property. |
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| 15 | 15 | | SECTION 2. Section 23.215, Tax Code, is amended by amending |
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| 16 | 16 | | Subsection (b) and adding Subsection (c) to read as follows: |
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| 17 | 17 | | (b) The chief appraiser shall appraise the property using |
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| 18 | 18 | | the income method of appraisal described by Section 23.012 [in the |
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| 19 | 19 | | manner provided by Section 11.1825(q)]. The chief appraiser shall |
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| 20 | 20 | | use that method regardless of whether the chief appraiser considers |
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| 21 | 21 | | that method to be the most appropriate method of appraising the |
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| 22 | 22 | | property. In appraising the property, the chief appraiser shall: |
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| 23 | 23 | | (1) consider the restrictions provided by this section |
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| 24 | 24 | | on the income of the individuals or families to whom the dwelling |
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| 25 | 25 | | units may be rented and the amount of rent that may be charged for |
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| 26 | 26 | | purposes of computing the actual rental income from the property or |
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| 27 | 27 | | projecting future rental income; and |
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| 28 | 28 | | (2) use the same capitalization rate that the chief |
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| 29 | 29 | | appraiser uses to appraise other rent-restricted properties. |
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| 30 | 30 | | (c) Not later than January 31 of each year, the appraisal |
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| 31 | 31 | | district shall give public notice in the manner determined by the |
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| 32 | 32 | | district, including posting on the district's Internet website if |
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| 33 | 33 | | applicable, of the capitalization rate to be used in that year to |
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| 34 | 34 | | appraise property described by this section. |
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| 35 | 35 | | SECTION 3. Sections 11.1825(q), (r), (s), (v), (w), (x), |
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| 36 | 36 | | and (y), Tax Code, are repealed. |
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| 37 | 37 | | SECTION 4. The changes in law made by this Act to Sections |
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| 38 | 38 | | 11.1825 and 23.215, Tax Code, apply only to an ad valorem tax year |
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| 39 | 39 | | that begins on or after January 1, 2016. |
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| 40 | 40 | | SECTION 5. This Act takes effect January 1, 2016. |
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