DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 359 Original 2016 Regular Session Moreno
Abstract: Requires that certain income and other restrictions be considered in the calculations used
to determine the fair market value of certain low-income housing property for purposes of
ad valorem tax assessment.
Present constitution requires the assessment of property for purposes of ad valorem taxation based
on a percentage of the property's fair market value.
Present law requires that uniform criteria be used by assessors in the determination of fair market
value for real and personal property. Fair market value is determined by using the following
generally recognized appraisal procedures: the market approach, the cost approach, or the income
approach.
Present law requires that in using the income approach, an assessor shall use an appraisal technique
in which the anticipated net income is processed to indicate the capital amount of the investment
which produces the net income.
Proposed law retains present law but adds specific requirements concerning the determination of fair
market value of low-income housing properties.
Proposed law requires that any calculation based on income generated by the property shall be made
utilizing the actual income restricted rents and any other specific operational requirements applicable
to the property. Further, a low-income housing property shall not be considered comparable real
property for the assessment or an appeal of an assessment of other properties.
Proposed law defines "low income housing property" for purposes of proposed law as a property
eligible for any of the following: federal income tax credits available under federal law; below
market interest rate on financing obtained under the Homes Investment Partnership Program under
the Cranston-Gonzales National Affordable Housing Act or the Federal Home Loan Bank Affordable
Housing Program established pursuant to federal law; or, any other federal, state, or similar program
intended to provide low-income housing with restricted occupancy and rental rates.
Effective January 1, 2017.
(Amends R.S. 47:2323(C)(intro. para.); Adds R.S. 47:2323(C)(4))