AZ HB2166

Creates a new property classification (Class Four, paragraph 9) for low income multifamily residential rental properties valued under a new statutory income method.

Establishes Article 11 in Title 42, Chapter 13 to govern valuation of low income multifamily residential rental properties that received federal low income housing tax credits under Internal Revenue Code Section 42.

Requires properties to remain income and rent restricted consistent with IRC Section 42 and have no court judgments finding breaches of restrictive covenants to qualify for the valuation method.

Allows owners to elect an income approach valuation method using actual annual income and expenses with a capitalization rate of 12.5% plus the effective tax rate, with election deadline of September 1 preceding the valuation year.

Permits owners to submit current or pro forma income and expense data to the county assessor, with all submitted information treated as confidential, and allows appeals with updated financial data.