HB455 Summary

• Requires appraisals of Class II affordable rental housing properties to use income-based valuation methods that account for legally-imposed or covenant-restricted occupancy and rental limitations, effective for tax year commencing October 1, 2014.

• Mandates property owners provide county tax assessors with annual statements of actual gross and net operating income by October 1 of each year for properties subject to affordable housing restrictions.

• Prohibits consideration of federal or state income tax credits in property valuations, except when directly utilized by the property owner to offset their own income taxes.

• Requires the Department of Revenue to annually determine and publish market-value capitalization rates for use in affordable housing property assessments, adjusted for the adverse effect of rental restrictions on property value.

• Applies to assessments made on or after October 1, 2014, and to pending appeals of pre-2014 assessments that are not yet final and unappealable.