AZ HB2382

Establishes a new class four property classification for low-income multifamily residential rental properties that received federal income tax credits under section 42 of the Internal Revenue Code.

Allows owners of low-income multifamily residential rental properties to elect a statutory income method for valuation using actual annual income and expenses with a capitalization rate of 12.5% plus the effective tax rate.

Requires owners electing this valuation method to submit income and expense information for their most recent fiscal year to the county assessor before September 1 of the year preceding the valuation year, or pro forma data if insufficient historical data exists.

Establishes that the property must remain subject to income and rent restrictions consistent with federal tax code and recorded covenants agreements, and must not have court judgments finding breaches of those restrictions.

Allows owners using this valuation method to appeal property values pursuant to existing appeal procedures, with the option to submit more recent income and expense data during the appeal process.