House Bill 14 Summary

• Amends Idaho Code Section 63-205A to revise how net operating income (NOI) is calculated for Section 42 low-income housing properties used in property tax assessments.

• Clarifies that housing tax credits shall not be included in the capitalized NOI, but the total dollar amount of credits shall be added to capitalized NOI using specified procedures based on when credits were received and regulatory agreement dates.

• Requires that NOI be determined by reducing effective gross income by normalized operating expenses, compliance and audit fees, asset management fees, and costs specified in the tax credit regulatory agreement, but excluding general partner fees.

• Directs the Idaho State Tax Commission to gather market data to determine capitalization rates for Section 42 properties from comparable sales and make this information available to county assessors; if fewer than three comparable sales exist, rates from non-federally assisted properties shall be used.

• Requires property owners to provide annual financial statements to the Idaho State Tax Commission by April 1 each year, and requires the Idaho Housing and Finance Association to provide tax credit allocation information by May 1 annually.