HB 13 Summary

• Requires appraisals of Class II affordable rental housing with legal restrictions or restrictive covenants to use net operating income capitalized at rates annually determined by the Department of Revenue, effective for tax year beginning October 1, 2013.

• Mandates that tax assessors, boards of equalization, and Department of Revenue agents consider the impact of occupancy and rental restrictions on property value when appraising affordable rental housing.

• Prohibits consideration of federal or state income tax credits in property appraisals unless retained by the legal property owner, and restricts use of replacement cost approach except when it produces lower value than income approach.

• Requires property owners to provide annual statements of actual gross and net operating income plus documentation of government subsidies used for affordable housing to county tax assessors by October 1 each year.

• Directs the Department of Revenue to determine and distribute annual capitalization rates to assessors and equalization boards, and to adopt rules implementing the act's requirements.