Texas Tax Code

§ 23.012 — INCOME METHOD OF APPRAISAL

TX § 23.012Title 1. PROPERTY TAX CODE · Part D. APPRAISAL AND ASSESSMENT · Ch. 23. APPRAISAL METHODS AND PROCEDURES · Art. A. APPRAISALS GENERALLY

Statute text

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(a)If the income method of appraisal is the most appropriate method to use to determine the market value of real property, the chief appraiser shall:

(1)analyze comparable rental data available to the chief appraiser or the potential earnings capacity of the property, or both, to estimate the gross income potential of the property;

(2)analyze comparable operating expense data available to the chief appraiser to estimate the operating expenses of the property;

(3)analyze comparable data available to the chief appraiser to estimate rates of capitalization or rates of discount; and

(4)base projections of future rent or income potential and expenses on reasonably clear and appropriate evidence.

(b)In developing income and expense statements and cash-flow projections, the chief appraiser shall consider:

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Legislative history

Added by Acts 1997, 75th Leg., ch. 1039, Sec. 22, eff. Jan. 1, 1998. Amended by Acts 2003, 78th Leg., ch. 548, Sec. 1, eff. Jan. 1, 2004.