85R9449 CJC-F
By: Anderson of Dallas H.B. No. 2532
A BILL TO BE ENTITLED
AN ACT
relating to the appraisal for ad valorem tax purposes 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. Section 23.215, Tax Code, is amended to read as
follows:
Sec. 23.215. APPRAISAL OF CERTAIN NONEXEMPT PROPERTY USED
FOR LOW-INCOME OR MODERATE-INCOME HOUSING. (a) This section
applies only to real property owned by an organization:
(1) for the purpose of renting the property [that on
the effective date of this section was rented] to a low-income or
moderate-income individual or family satisfying the organization's
income eligibility requirements [and that continues to be used for
that purpose];
(2) that is [was] financed under the low income
housing tax credit program under Subchapter DD, Chapter 2306,
Government Code;
(3) that does not receive an exemption under Section
11.182 or 11.1825; and
(4) the owner of which has not entered into an
agreement with any taxing unit to make payments to the taxing unit
instead of taxes on the property.
(b) The chief appraiser shall use the income method of
appraisal as described by Section 23.012 to appraise the property,
regardless of whether the chief appraiser considers that method to
be the most appropriate method of appraising the property [in the
manner provided by Section 11.1825(q)]. In using the income method
to appraise the property, the chief appraiser shall:
(1) use information contained in the most recent
annual owner's compliance report filed by the organization that
owns the property with the Texas Department of Housing and
Community Affairs to:
(A) estimate the property's gross income
potential and operating expenses; and
(B) make projections relating to the property's
future operating expenses; and
(2) make projections relating to the property's future
rent or income potential using the maximum amount of rent that is
permitted to be charged for the property, as established by the
United States Department of Housing and Urban Development.
(c) The chief appraiser shall appraise property in the
manner provided by this section regardless of whether, on January 1
of the tax year in which the property is appraised:
(1) the property is no longer under active
construction; and
(2) the occupancy of the property has stabilized.
(d) For purposes of this section, a property's operating
expenses include:
(1) standard property maintenance;
(2) debt service;
(3) employee compensation;
(4) fees required by government agencies;
(5) expenses incurred in satisfying the requirements
of lenders, including reserve requirements;
(6) insurance; and
(7) other justifiable expenses related to the
property's operation and maintenance.
SECTION 2. The change in law made by this Act applies only
to an ad valorem tax year that begins on or after January 1, 2018.
SECTION 3. This Act takes effect January 1, 2018.