| 1 | 1 | | 85R10589 CJC-D |
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| 2 | 2 | | By: Isaac H.B. No. 3999 |
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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 appraisal for ad valorem tax purposes of certain |
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| 8 | 8 | | property used to provide affordable 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 23.21, Tax Code, is amended by adding |
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| 11 | 11 | | Subsection (f) to read as follows: |
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| 12 | 12 | | (f) This subsection applies only to real property that was |
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| 13 | 13 | | previously owned by a charitable organization meeting the |
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| 14 | 14 | | requirements of Sections 11.18(e) and (f) and that was sold to a |
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| 15 | 15 | | low-income or moderate-income individual or family meeting income |
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| 16 | 16 | | eligibility standards established by the organization under |
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| 17 | 17 | | regulations or restrictions limiting to a percentage of the |
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| 18 | 18 | | individual's or the family's income the amount that the individual |
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| 19 | 19 | | or family was required to pay for purchasing the property. If the |
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| 20 | 20 | | property was sold pursuant to a shared or fixed appreciation |
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| 21 | 21 | | affordable housing program established by the organization the |
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| 22 | 22 | | regulations of which provide that for a fixed period of time the |
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| 23 | 23 | | organization is entitled to a portion of the appreciation in value |
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| 24 | 24 | | of the property, if any, on sale of the property, the chief |
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| 25 | 25 | | appraiser: |
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| 26 | 26 | | (1) may not take into account the portion of the |
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| 27 | 27 | | appreciation in value of the property the organization would be |
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| 28 | 28 | | entitled to receive if the property were sold on January 1 of the |
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| 29 | 29 | | tax year in which the property is appraised when determining the |
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| 30 | 30 | | appraised value of the property in that tax year; and |
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| 31 | 31 | | (2) shall take into account when appraising the |
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| 32 | 32 | | property the extent to which any regulations, resale restrictions, |
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| 33 | 33 | | or conditions applicable to the property established by the |
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| 34 | 34 | | organization reduce the market value of the property. |
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| 35 | 35 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 36 | 36 | | for a tax year beginning on or after the effective date of this Act. |
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| 37 | 37 | | SECTION 3. This Act takes effect January 1, 2018. |
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