SB1076 Summary

• Adds low-income multifamily residential rental properties to Arizona's property tax classification system as Class Four property, subject to special valuation rules under a new article 12.

• Allows owners of low-income multifamily properties that received federal low-income housing tax credits to elect an income-based valuation method instead of standard full cash value assessment.

• Income valuation uses actual annual income and expenses with a capitalization rate adjusted for risks specific to low-income housing, including restrictions on use, limited buyer pool, and reduced liquidity.

• Requires owners to submit three years of audited financial statements (or pro forma data for newer properties) to the county assessor by September 1 to elect income valuation.

• Permits property owners to appeal assessed values using either the elected valuation method or the income method set forth in the article.