Revenue and taxation; ad valorem; valuation method; fair cash value; low income housing tax credit; county assessor; effective date.
Impact
The legislation prohibits county assessors from including the value or amount of any federal or state low income housing tax credits when calculating the fair cash value of these properties. This change is designed to reflect a more accurate market-based value of the property without being influenced by external financial incentives, thus potentially increasing the fair tax burden on such properties.
Summary
House Bill 4485 pertains to revenue and taxation, specifically focusing on how real property is assessed for ad valorem tax purposes. The bill mandates that county assessors utilize an income-approach method to determine the fair cash value of properties financed in whole or in part through federal low income housing tax credits. This approach seeks to establish a more standardized valuation process for properties associated with such credits, thereby impacting how these properties are taxed at the county level.
Contention
Supporters argue that this measure will promote fairness in property tax assessments and prevent inflated valuations that could arise when tax credits are considered. They believe this will encourage investment in low income housing without adversely affecting local revenue. Conversely, critics may view this as a method to dilute funding for public services, as properties that currently benefit from tax credits could see a change in their tax obligations, leading to debates on local government revenue streams and the broader implications for housing policy.