Bill > SB598

This bill modifies how property tax assessors evaluate commercial real properties that have been developed under Section 42 of the Internal Revenue Code, which provides Low-Income Housing Tax Credits (LIHTC). The bill requires property supervisors to consider rent restrictions and affordability requirements when determining property value, and allows them to use the replacement cost approach only if it results in a lower valuation than the income approach. Additionally, the bill introduces a new requirement for the Department of Housing and Community Development to notify the State Department of Assessments and Taxation within 30 days of closing and executing a regulatory agreement that a commercial property has been awarded a low-income housing tax credit. Specifically, the bill clarifies that tax credits cannot be considered as income attributable to the property and establishes a process for documenting LIHTC properties. The changes will take effect on June 1, 2025, and apply to all taxable years beginning after June 30, 2025, potentially providing more consistent and favorable property tax assessments for affordable housing developments.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0598?ys=2025RS