Texas HB4478 amends the Tax Code to require appraisal districts to use specific criteria for determining capitalization rates for low-income housing.

HB4478 mandates that appraisal districts in Texas must post their capitalization rate methodology on their websites, if they have one, before announcing the rate. The methodology cannot be based solely on prior year changes and must include economic metrics relevant to the market. This rule applies to ad valorem tax years starting after the bill's effective date of January 1, 2026.

Texas HB4478 amends the Tax Code to require appraisal districts to use specific criteria for determining capitalization rates for low-income housing.

HB4478 mandates that appraisal districts in Texas must post their capitalization rate methodology on their websites, if they have one, before announcing the rate. The methodology cannot be based solely on prior year changes and must include economic metrics relevant to the market. This rule applies to ad valorem tax years starting after the bill's effective date of January 1, 2026.