 |
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
appropriations; crime victim notification fund
(NOW: tax credit extension; affordable housing)
As passed by the Senate, S.B. 1244 appropriated $7,600,000 from the state General Fund to the Law Enforcement Crime Victim Notification Fund (Fund) in FY 2024 and appropriated $400,000 from the state General Fund to the State Treasurer in FY 2024 to pay any costs associated with the Fund.
The House of Representatives adopted a strike-everything amendment that does the following:
Purpose
Specifies that the property valuation of a project that qualifies for the Affordable Housing Tax Credit (Credit) that uses the owner-elected statutory income-based valuation method is not a reduction in state or local property taxes for the purposes of the Credit.
Background
The Low-Income Housing Tax Credit (LIHTC) Program was enacted by the U.S. Congress in 1986 to finance the construction and rehabilitation of low-income affordable rental housing for individuals and families. The Internal Revenue Service allocates housing tax credits to designated state agencies which then award the credits to developers of qualified projects. The Arizona Department of Housing (ADOH) allocates available credits each year in Arizona (26 U.S.C. § 42).
Laws
2021, Chapter 430 established the Credit, administered by the ADOH. The
ADOH must allocate $4,000,000 for the Credit in each calendar year until
January 1, 2026. A qualified project approved for the Credit is ineligible for
any abatement, exemption or other reduction in state or local ad valorem
property taxes otherwise allowed by statute.
Low-income multifamily residential rental property is property for which the owner received an allocation of federal income tax credits through the LIHTC Program. An owner or operator of qualifying low-income multifamily residential rental property may elect a statutory income-based method for valuing the property. The county assessor must value low-income multifamily residential rental property based on the income method to value using the actual annual income and actual annual expenses of the property and using the county assessor-determined capitalization rate. If a low-income multifamily residential rental property has fully transitioned to current use as a conventional multifamily property, the property no longer qualifies for the statutory income-based valuation method (A.R.S. § 42-13603).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
2. Deems a qualified project that is approved for the Credit as ineligible for any abatement or other reduction in state or local ad valorem property taxes, rather than any abatement, exemption or other reduction in state or local ad valorem property taxes.
3. Becomes effective on the general effective date.
House Action
MAPS 3/28/23 W/D
APPROP 4/3/23 DPA/SE 14-1-0-0
3rd Read 6/12/23 43-17-0
Prepared by Senate Research
June 12, 2023
MG/sr