Louisiana House Bill HB420

Louisiana 2014 Regular Session

• Introduced: 3/10/14
• Refer: 3/10/14

Caption

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

Impact

The introduction of HB 420 has the potential to significantly alter how low-income housing properties are assessed for taxes in the state. By mandating that assessors consider a broader range of financial factors, including benefits from federal programs, the intent is to create a more accurate and possibly lower valuation for such properties. This could alleviate some of the financial burden on owners and facilitate the maintenance and expansion of affordable housing. The bill aims to align assessment practices more closely with the realities of financing low-income housing.

Summary

House Bill 420 aims to establish specific criteria for the valuation of low-income housing properties for the purposes of ad valorem tax assessment. The bill requires that all benefits and burdens of ownership, including federal income tax credits and other financial assistance programs, be included in the calculation of anticipated net income when determining the fair market value of low-income housing. This stipulation is intended to ensure that the unique financial characteristics of such properties are adequately represented in tax assessments, which could lead to more equitable taxation for owners of low-income housing.

Sentiment

The sentiment surrounding HB 420 is largely supportive among housing advocates and stakeholders invested in the provision of low-income housing. Supporters argue that the bill is a step in the right direction for addressing the disparities in tax assessments that can negatively impact the viability of affordable housing. Conversely, some critics express concerns that focusing too heavily on benefits could complicate the assessment process or result in unintended consequences for tax revenue, although these views are less prominent in the discussions surrounding the bill.

Contention

While HB 420 presents a foundation for improving tax assessments pertaining to low-income housing, there are concerns regarding the broader implications for state tax revenue and the clarity of the regulations it introduces. Stakeholders express mixed feelings about how this will influence future legislative discussions on housing and taxation policies. Ultimately, the bill emphasizes the need for a balance between providing necessary financial relief for low-income housing owners and maintaining sufficient tax revenue for state and local governments.