Ad valorem tax; remove the provision that prescribes the manner in which affordable rental housing must be appraised.
The implications of HB 13 on state laws are significant, as it may alter the framework by which affordable rental housing is valued for tax purposes. By eliminating the mandated approach to property appraisal, it could lead to a range of appraisal practices that might differ significantly from current standards. This change may encourage tax assessors to adopt valuations based on market conditions or income potential, potentially affecting the overall revenue generated from property taxes in Mississippi, particularly in affordable housing sectors.
House Bill 13 amends Section 27-35-50 of the Mississippi Code of 1972. The primary purpose of this bill is to remove a specific provision that prescribes how affordable rental housing should be appraised for the purposes of determining its true value regarding ad valorem taxation. The bill aims to simplify the appraisal process and possibly provide more flexibility for tax assessors, allowing them to employ various methods of determining property values without being restricted by previously set criteria in the law.
Debate surrounding HB 13 is likely to center on the balance between tax revenue needs and the stability of affordable housing. Critics of the bill may argue that removing specific appraisal methodologies could lead to increased taxes for affordable housing properties, which may, in turn, drive up rents and negatively affect low-income tenants. Proponents, however, might assert that a more flexible appraisal process could ultimately benefit the housing market by reflecting true market values more accurately, thus supporting economic growth and resource allocation in the state.