Bill Text: TX HB3133 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to the appraisal for ad valorem tax purposes of property on which housing is being or has been built or repaired for sale or rent to a low-income individual or family.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2011-06-17 - Effective immediately [HB3133 Detail]
Download: Texas-2011-HB3133-Enrolled.html
H.B. No. 3133 |
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relating to the appraisal for ad valorem tax purposes of property on | ||
which housing is being or has been built or repaired for sale or | ||
rent to a low-income individual or family. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 11.181(b), Tax Code, is amended to read | ||
as follows: | ||
(b) Property may not be exempted under Subsection (a) after | ||
the fifth anniversary of the date the organization acquires the | ||
property. Property that received an exemption under Section | ||
11.1825 and that was subsequently transferred by the organization | ||
described by that section that qualified for the exemption to an | ||
organization described by this section may not be exempted under | ||
Subsection (a) after the fifth anniversary of the date the | ||
transferring organization acquired the property. | ||
SECTION 2. Section 11.1825, Tax Code, is amended by | ||
amending Subsections (f) and (q) and adding Subsection (p-1) to | ||
read as follows: | ||
(f) For property to be exempt under this section, the | ||
organization must own the property for the purpose of constructing | ||
or rehabilitating a housing project on the property and: | ||
(1) renting the housing, regardless of whether the | ||
housing project consists of multifamily or single-family | ||
dwellings, to individuals or families whose median income is not | ||
more than 60 percent of the greater of: | ||
(A) the area median family income for the | ||
household's place of residence, as adjusted for family size and as | ||
established by the United States Department of Housing and Urban | ||
Development; or | ||
(B) the statewide area median family income, as | ||
adjusted for family size and as established by the United States | ||
Department of Housing and Urban Development; or | ||
(2) selling single-family dwellings to individuals or | ||
families whose median income is not more than the greater of: | ||
(A) the area median family income for the | ||
household's place of residence, as adjusted for family size and as | ||
established by the United States Department of Housing and Urban | ||
Development; or | ||
(B) the statewide area median family income, as | ||
adjusted for family size and as established by the United States | ||
Department of Housing and Urban Development. | ||
(p-1) Notwithstanding the other provisions of this section, | ||
the transfer of property from an organization described by this | ||
section to a nonprofit organization that claims an exemption for | ||
the property under Section 11.181(a) is a proper use of and purpose | ||
for owning the property under this section and does not affect the | ||
eligibility of the property for an exemption under this section. | ||
(q) If property qualifies for an exemption under this | ||
section, the chief appraiser shall use the income method of | ||
appraisal as described [ |
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the appraised value of the property. The chief appraiser shall use | ||
that method regardless of whether the chief appraiser considers | ||
that method to be the most appropriate method of appraising the | ||
property. In appraising the property, the chief appraiser shall: | ||
(1) consider the restrictions provided by this section | ||
on the income of the individuals or families to whom the dwelling | ||
units of the housing project may be rented and the amount of rent | ||
that may be charged for purposes of computing the actual rental | ||
income from the property or projecting future rental income; and | ||
(2) use the same capitalization rate that the chief | ||
appraiser uses to appraise other rent-restricted properties. | ||
SECTION 3. Section 23.21, Tax Code, is amended by adding | ||
Subsection (c) to read as follows: | ||
(c) In appraising real property that was previously owned by | ||
an organization that received an exemption for the property under | ||
Section 11.181(a) and that was sold to a low-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, the chief appraiser shall take into account the extent to | ||
which that use and limitation and any resale restrictions or | ||
conditions applicable to the property established by the | ||
organization reduce the market value of the property. | ||
SECTION 4. Section 23.55, Tax Code, is amended by adding | ||
Subsection (p) to read as follows: | ||
(p) The sanctions provided by Subsection (a) do not apply to | ||
real property transferred to an organization described by Section | ||
11.181(a) if the organization converts the real property to a use | ||
for which the real property is eligible for an exemption under | ||
Section 11.181(a). This subsection does not apply to the sanctions | ||
provided by Subsection (a) in connection with a change in use | ||
described by this subsection that are due to a county or school | ||
district unless the governing body of the county or school | ||
district, as applicable, waives the sanctions in the manner | ||
required by law for official action by the body. | ||
SECTION 5. (a) The changes in law made by this Act to | ||
Sections 11.181 and 11.1825, Tax Code, apply to the taxation of real | ||
property beginning with the 2011 tax year. | ||
(b) The change in law made by this Act to Section 23.21, Tax | ||
Code, applies only to an appraisal of real property on or after the | ||
effective date of this Act. An appraisal of real property before the | ||
effective date of this Act is governed by the law in effect | ||
immediately before the effective date of this Act, and that law is | ||
continued in effect for that purpose. | ||
SECTION 6. Section 23.55(p), Tax Code, as added by this Act, | ||
applies only to a transfer of real property that occurs on or after | ||
the effective date of this Act. A transfer of real property that | ||
occurs before the effective date of this Act is governed by the law | ||
in effect immediately before the effective date of this Act, and | ||
that law is continued in effect for that purpose. | ||
SECTION 7. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2011. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3133 was passed by the House on May | ||
10, 2011, by the following vote: Yeas 94, Nays 50, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 3133 on May 25, 2011, by the following vote: Yeas 107, Nays 38, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3133 was passed by the Senate, with | ||
amendments, on May 24, 2011, by the following vote: Yeas 29, Nays | ||
2 | ||
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______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |