Louisiana House Bill HB610

Louisiana 2016 Regular Session

• Introduced: 3/4/16
• Refer: 3/4/16
• Refer: 3/14/16
• Report Pass: 4/18/16
• Engrossed: 4/26/16
• Refer: 4/27/16
• Report Pass: 5/9/16
• Enrolled: 5/12/16
• Chaptered: 5/26/16
• Passed: 5/26/16

Caption

Prohibits the inclusion of the value of certain federal tax credits and special financing provisions when determining the fair market value of certain property for purposes of tax assessment (EN SEE FISC NOTE LF RV See Note)

Impact

The implications of HB 610 are significant for both property owners and the overall housing market in Louisiana. By excluding certain federal tax credits from the appraisal process, the bill aims to lower the assessed value of affordable housing units. This change is expected to reduce the tax burden on property owners who are part of housing programs designed to assist low to moderate-income individuals and families. The bill reflects a growing recognition of the need to promote affordability and accessibility in housing amidst rising property values.

Summary

House Bill 610 seeks to amend Louisiana's regulations concerning the fair market valuation of residential properties for ad valorem property tax assessments. Specifically, the bill prohibits the inclusion of certain federal tax credits and financing provisions when evaluating the fair market value of affordable rental housing properties. This amendment aims to affect how assessors calculate property values, thereby ensuring that affordable housing is not unduly overvalued through consideration of federal benefits.

Sentiment

The sentiment around HB 610 appears to be positive, particularly among proponents of affordable housing initiatives. By alleviating the tax burdens on properties that serve low-income residents, stakeholders see this bill as a necessary step towards enhancing the availability of affordable housing in Louisiana. There may be concerns from some tax assessors and lawmakers about the potential impact on local tax revenues, but the overall perspective leans toward supporting this measure as a way to protect vulnerable communities.

Contention

While HB 610 largely aims to enhance affordable housing availability, it may encounter contention from those who argue it could strain local government budgets by decreasing property tax revenues. Additionally, some may perceive this legislative change as a prioritization of certain housing types over others, sparking debate on the fairness of property tax assessments in general. Nonetheless, the bill has thus far shown support in voting and committee discussions, indicating a favorable legislative path.