Bill Text: TX HB2532 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the appraisal for ad valorem tax purposes of certain nonexempt property used for low-income or moderate-income housing.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-23 - Referred to Ways & Means [HB2532 Detail]
Download: Texas-2017-HB2532-Introduced.html
85R9449 CJC-F | ||
By: Anderson of Dallas | H.B. No. 2532 |
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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 [ |
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moderate-income individual or family satisfying the organization's | ||
income eligibility requirements [ |
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(2) that is [ |
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housing tax credit program under Subchapter DD, Chapter 2306, | ||
Government Code; | ||
(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) The chief appraiser shall use the income method of | ||
appraisal as described by Section 23.012 to appraise the property, | ||
regardless of whether the chief appraiser considers that method to | ||
be the most appropriate method of appraising the property [ |
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to appraise the property, the chief appraiser shall: | ||
(1) use information contained in the most recent | ||
annual owner's compliance report filed by the organization that | ||
owns the property with the Texas Department of Housing and | ||
Community Affairs to: | ||
(A) estimate the property's gross income | ||
potential and operating expenses; and | ||
(B) make projections relating to the property's | ||
future operating expenses; and | ||
(2) make projections relating to the property's future | ||
rent or income potential using the maximum amount of rent that is | ||
permitted to be charged for the property, as established by the | ||
United States Department of Housing and Urban Development. | ||
(c) The chief appraiser shall appraise property in the | ||
manner provided by this section regardless of whether, on January 1 | ||
of the tax year in which the property is appraised: | ||
(1) the property is no longer under active | ||
construction; and | ||
(2) the occupancy of the property has stabilized. | ||
(d) For purposes of this section, a property's operating | ||
expenses include: | ||
(1) standard property maintenance; | ||
(2) debt service; | ||
(3) employee compensation; | ||
(4) fees required by government agencies; | ||
(5) expenses incurred in satisfying the requirements | ||
of lenders, including reserve requirements; | ||
(6) insurance; and | ||
(7) other justifiable expenses related to the | ||
property's operation and maintenance. | ||
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, 2018. | ||
SECTION 3. This Act takes effect January 1, 2018. |