HB13 Alabama 2014 Session

Summary

Primary Sponsor

Oliver Robinson

Democrat

Session

Regular Session 2014

Title

Real property, affordable rental housing, appraisal of certain Class II property having restrictions by law or covenant must take into account net operating income based on restrictions, requiring Revenue Department to adopt rules to implement

Description

This bill would provide further for appraisals of the fair and reasonable market value of rented or leased Class II real property constituting affordable rental housing. Appraisals for any such Class II property having a restriction either by law or by a restrictive covenant that runs with the land would be required to take into account the net operating income attributable to the property based on such restrictions, utilizing capitalization rates annually determined by the Department of Revenue.

This bill would additionally provide that, for ad valorem tax appraisal purposes, the impact on fair and reasonable market value of such Class II property of legal restrictions and binding covenants of record on occupancy and rentals with respect thereto must be considered by tax assessors, boards of equalization, and others charged with appraisal of property for ad valorem tax purposes, and that the value of any tax credit becoming available as a result of such restrictions would not be considered in the appraisal unless retained by the legal owner of such Class II property.

This bill would also clarify the ad valorem tax status of such tax credits and require the Department of Revenue to promulgate rules for its implementation.

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Subjects

Ad Valorem Tax