| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 89R16230 PRL-D | |
| 2 | 2 | By: Turner H.B. No. 4478 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | ||
| 6 | 6 | ||
| 7 | 7 | A BILL TO BE ENTITLED | |
| 8 | 8 | AN ACT | |
| 9 | 9 | relating to the determination by an appraisal district of the | |
| 10 | 10 | capitalization rate to be used in the appraisal for ad valorem tax | |
| 11 | 11 | purposes of property used for low-income housing. | |
| 12 | 12 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 13 | 13 | SECTION 1. Section 11.1825, Tax Code, is amended by adding | |
| 14 | 14 | Subsection (r-1) to read as follows: | |
| 15 | 15 | (r-1) An appraisal district shall post on the district's | |
| 16 | 16 | Internet website, if the district maintains an Internet website, | |
| 17 | 17 | the methodology used by the district to develop the capitalization | |
| 18 | 18 | rate proposed to be used in the district for that tax year. The | |
| 19 | 19 | appraisal district may not give notice of the capitalization rate | |
| 20 | 20 | under Subsection (r) until the district has posted the methodology | |
| 21 | 21 | as required by this subsection and provided the public a reasonable | |
| 22 | 22 | opportunity to comment on the methodology's applicability for the | |
| 23 | 23 | territory in which the rate will be used. The methodology used to | |
| 24 | 24 | develop the capitalization rate: | |
| 25 | 25 | (1) may not be based solely on a percentage increase or | |
| 26 | 26 | decrease from the prior tax year's capitalization rate; and | |
| 27 | 27 | (2) must include viable economic metrics for the | |
| 28 | 28 | corresponding market where the rate will be applied. | |
| 29 | 29 | SECTION 2. This Act applies only to an ad valorem tax year | |
| 30 | 30 | that begins on or after the effective date of this Act. | |
| 31 | 31 | SECTION 3. This Act takes effect January 1, 2026. |