87R19716 CJC-D
By: Deshotel, Guillen H.B. No. 3439
Substitute the following for H.B. No. 3439:
By: Cole C.S.H.B. No. 3439
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 or will be [was] financed under the low
income housing tax credit program under Subchapter DD, Chapter
2306, Government Code, and subject to a land use restriction
agreement under that subchapter;
(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) In appraising property that is under construction or
that has not reached stabilized occupancy on January 1 of the tax
year in which the property is appraised, the [The] chief appraiser
shall determine the value of [appraise] the property in the manner
provided by Section 11.1825(q) using the property's projected
income and expenses for the first full year of operation as
established and utilized in the underwriting report pertaining to
the property prepared by the Texas Department of Housing and
Community Affairs under Subchapter DD, Chapter 2306, Government
Code, and adjust that value as provided by this subsection to
determine the appraised value of the property. For a property under
construction on January 1, the chief appraiser shall adjust the
value to reflect the percentage of the construction that is
complete on January 1. For a property on which construction is
complete but that has not reached stabilized occupancy on January
1, the chief appraiser shall adjust the value to reflect the actual
occupancy of the property on January 1. For purposes of this
subsection, a property is not considered to be under construction
if the purpose of the work being performed on the property is the
maintenance or rehabilitation of the property.
(c) In appraising property for the first tax year following
the year in which construction on the property is complete and
occupancy of the property has stabilized and any tax year
subsequent to that year, the chief appraiser shall determine the
appraised value of the property in the manner provided by Section
11.1825(q).
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, 2022.
SECTION 3. This Act takes effect January 1, 2022.