HB14-1349 Summary

• Creates a new property tax exemption for "qualified business entities" (limited partnerships or limited liability companies) controlled by nonprofit organizations that obtain federal tax credits, effective for property tax years beginning January 1, 2014 or later.

• A qualified business entity must be formed to obtain federal tax credits and have a general partner or managing member that would qualify for property tax exemption under existing nonprofit exemption statutes.

• Real and personal property owned by qualified business entities is exempt from property tax if used for purposes specified in existing nonprofit exemption statutes (sections 39-3-106 to 39-3-116).

• Repeals section 39-3-114.5 (which previously required payments in lieu of property taxes) and removes references to such payments from school funding distribution formulas in sections 22-54-115 and 22-54.5-408.

• Expands the definition of "not for private gain or corporate profit" to include entities organized for new markets tax credit (26 U.S.C. sec. 45D) or rehabilitation tax credit (26 U.S.C. sec. 47) programs, provided a nonprofit entity serves as general partner or member.