Ad valorem tax; remove the provision that prescribes the manner in which affordable rental housing must be appraised.
The amendment is expected to have significant implications for property taxation in the state. By removing the standard appraisal procedure, the bill aims to allow the assessors to utilize various approaches, such as the income capitalization method, depending on the best data available for each distinct property category. This change could potentially lead to more accurate reflections of property values, tailored to local market conditions and property usage.
House Bill 236 seeks to amend Section 27-35-50 of the Mississippi Code of 1972. The primary change proposed by this bill is the removal of the specific provision prescribing how the appraisal of affordable rental housing should be conducted for the purpose of determining its true value, which is essential for ad valorem taxation. By eliminating these prescribed methods, the bill gives more flexibility to tax assessors in determining the true value of affordable rental housing properties.
However, the bill's removal of standardized appraisal guidelines has raised concerns among advocates for affordable housing. Critics argue that these protective standards ensure that affordable rental housing is valued appropriately, safeguarding against potential overvaluation that could lead to increased taxes for property owners. Opponents fear that without these guidelines, there could be inconsistencies and potential discrimination in property tax assessments, thereby impacting the affordability of housing for low- and moderate-income residents in Mississippi.