| 1 | 1 | | 86R7450 CJC-F |
|---|
| 2 | 2 | | By: Miles S.B. No. 836 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the appraisal for ad valorem tax purposes of a housing |
|---|
| 8 | 8 | | unit that the owner or a predecessor of the owner acquired from a |
|---|
| 9 | 9 | | community land trust. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Section 23.21(d), Tax Code, is amended to read as |
|---|
| 12 | 12 | | follows: |
|---|
| 13 | 13 | | (d) In appraising a housing unit that the owner or a |
|---|
| 14 | 14 | | predecessor of the owner acquired from a community land trust |
|---|
| 15 | 15 | | created or designated under Section 373B.002, Local Government |
|---|
| 16 | 16 | | Code, and that is located on land owned by the trust and leased by |
|---|
| 17 | 17 | | the owner of the housing unit, the chief appraiser shall take into |
|---|
| 18 | 18 | | account the extent to which any regulations or restrictions |
|---|
| 19 | 19 | | limiting the right of the owner of the housing unit to sell the |
|---|
| 20 | 20 | | housing unit, including any limitation on the price for which the |
|---|
| 21 | 21 | | housing unit may be sold, reduce the market value of the housing |
|---|
| 22 | 22 | | unit. If the sale of the housing unit is subject to an eligible land |
|---|
| 23 | 23 | | use restriction, the chief appraiser may not appraise the housing |
|---|
| 24 | 24 | | unit in a tax year for an amount that exceeds the price for which the |
|---|
| 25 | 25 | | housing unit may be sold under the eligible land use restriction in |
|---|
| 26 | 26 | | that tax year. For purposes of this subsection, "eligible land use |
|---|
| 27 | 27 | | restriction" means an agreement or restrictive covenant applicable |
|---|
| 28 | 28 | | to a housing unit that: |
|---|
| 29 | 29 | | (1) is recorded in the real property records; |
|---|
| 30 | 30 | | (2) has a term of at least 40 years; |
|---|
| 31 | 31 | | (3) restricts the price for which the housing unit may |
|---|
| 32 | 32 | | be sold to a price that is or may be less than the market value of |
|---|
| 33 | 33 | | the housing unit; and |
|---|
| 34 | 34 | | (4) restricts the sale of the housing unit to a family |
|---|
| 35 | 35 | | meeting the income-eligibility standards established by Section |
|---|
| 36 | 36 | | 373B.006, Local Government Code. |
|---|
| 37 | 37 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
|---|
| 38 | 38 | | for a tax year that begins on or after the effective date of this |
|---|
| 39 | 39 | | Act. |
|---|
| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2019. |
|---|