SB379 Summary

• Requires appraisals of Class II affordable rental housing property to use income capitalization approach based on actual net operating income, adjusted for restrictions on occupancy and rental rates, effective for tax year beginning October 1, 2014.

• Mandates Department of Revenue to annually determine and provide capitalization rates to county tax assessors and boards of equalization reflecting prevailing cost of equity capital for commercial real estate.

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

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

• Establishes that legal restrictions and restrictive covenants limiting occupancy and rental rates must be considered in determining fair market value to promote affordable housing development and ensure uniform statewide assessment.