Louisiana House Bill HB359

Louisiana 2016 Regular Session

• Introduced: 3/2/16
• Refer: 3/2/16
• Refer: 3/14/16

Caption

Establishes criteria for valuation of low-income housing property for purposes of assessment of ad valorem taxes (OR SEE FISC NOTE LF RV See Note)

Impact

The passage of HB 359 is expected to have a significant impact on how low-income housing properties are valued for tax purposes. By formally requiring that income restrictions be factored into tax assessments, the bill aims to lower the tax burden on these properties, supporting the broader goal of increasing affordable housing availability. It aligns with federal tax credit programs and initiatives intended to promote low-income housing development and support households with restricted income levels. This adjustment could provide financial relief for property owners and foster a more sustainable environment for low-income residents.

Summary

House Bill 359, authored by Representative Moreno, establishes specific criteria for the valuation of low-income housing properties in the context of ad valorem tax assessments. The bill mandates that when determining the fair market value of such properties, assessors must consider actual income restricted rents and other operational requirements applicable to these properties. It distinguishes low-income housing properties from other types of real property, ensuring that they are not treated as comparable for assessment purposes. This legislative measure aims to help maintain affordability in the housing market by adjusting property tax assessments accordingly.

Sentiment

The sentiment around HB 359 appears to be largely supportive among advocates for affordable housing, who view the legislation as a necessary step in addressing the challenges faced by low-income households. Proponents argue that the bill will enhance the viability of low-income housing developments and make it easier for families to secure stable living conditions. However, there may be some dissent from local government bodies or property tax assessors who could be concerned about the implications of restricted revenue from property taxes, highlighting the tension between local funding needs and the objectives of affordable housing advocates.

Contention

Notable points of contention regarding HB 359 may revolve around the impact on local tax revenues, as the bill enforces a framework that could limit the assessment value of low-income housing. Critics might argue that this diminishment in property tax assessments could lead to shortfalls in funding for local services that rely heavily on property tax revenues. Additionally, discussions may arise about the fairness of valuing one category of housing differently than others, prompting debates around equity in tax treatment across property types.