ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: APPROP DP 5-4-1-0 | MAPS DPA 7-0-0-0 | 3^rd Read 16-12-2-0 House: APPROP DPA/SE 14-1-0-0

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SB 1244: appropriations; crime victim notification fund

NOW: tax credit extension; affordable housing

Sponsor: Senator Kavanagh, LD 3

House Engrossed

Overview

Specifies that the local assessment of a qualified Affordable Housing Tax Credit (AHTC) project is not a reduction in property taxes for the purposes of qualifying for the AHTC program.

History

The Arizona Department of Housing (ADOH) is required to procedurally evaluate affordable housing projects that comply under Section 42 of the Internal Revenue Code to qualify for the AHTC. ADOH allocates $4,000,000 of tax credits to taxpayers owning investments on qualifying affordable housing projects. Qualifying projects are ineligible for any abatement, exemption or other reduction in state or local ad valorem property taxes (A.R.S. § 41-3954).

Certain land and buildings of low-income multifamily residential rental property are subject to property tax valuation by county assessors, rather than the Arizona Department of Revenue (A.R.S. § 42-13602). Owners of these properties may elect to be assessed using the income method, which uses the actual annual income and expenses of the property to determine ad valorem property taxes (A.R.S. § 42-13603).

Provisions

1. States that the local assessment of property tax for Low-Income Multifamily Residential Rental Propertyis not a reduction in state or local ad valorem property taxes for the purposes of the AHTC. (Sec. 1)

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5.                   SB 1244

6. Initials AF/LV        Page 0 House Engrossed

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