85R10589 CJC-D
By: Isaac H.B. No. 3999
A BILL TO BE ENTITLED
AN ACT
relating to the appraisal for ad valorem tax purposes of certain
property used to provide affordable housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.21, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) This subsection applies only to real property that was
previously owned by a charitable organization meeting the
requirements of Sections 11.18(e) and (f) and that was sold to a
low-income or moderate-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. If the
property was sold pursuant to a shared or fixed appreciation
affordable housing program established by the organization the
regulations of which provide that for a fixed period of time the
organization is entitled to a portion of the appreciation in value
of the property, if any, on sale of the property, the chief
appraiser:
(1) may not take into account the portion of the
appreciation in value of the property the organization would be
entitled to receive if the property were sold on January 1 of the
tax year in which the property is appraised when determining the
appraised value of the property in that tax year; and
(2) shall take into account when appraising the
property the extent to which any regulations, resale restrictions,
or conditions applicable to the property established by the
organization reduce the market value of the property.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2018.