Relating to the determination by an appraisal district of the capitalization rate to be used in the appraisal for ad valorem tax purposes of property used for low-income housing.
relating to the determination by an appraisal district of the
capitalization rate to be used in the appraisal for ad valorem tax
purposes of property used for low-income housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.1825, Tax Code, is amended by adding
Subsection (r-1) to read as follows:
(r-1) An appraisal district shall post on the district’s
Internet website, if the district maintains an Internet website,
the methodology used by the district to develop the capitalization
rate proposed to be used in the district for that tax year. The
appraisal district may not give notice of the capitalization rate
under Subsection (r) until the district has posted the methodology
as required by this subsection and provided the public a reasonable
opportunity to comment on the methodology’s applicability for the
territory in which the rate will be used. The methodology used to
develop the capitalization rate:
(1) may not be based solely on a percentage increase or
decrease from the prior tax year’s capitalization rate; and
(2) must include viable economic metrics for the
corresponding market where the rate will be applied.
SECTION 2. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2026.
