Bill > HB4485

This bill mandates that county assessors use a specific valuation method, known as the income-approach method, to determine the fair cash value of real property that is financed, even partially, by federal low-income housing tax credits. These tax credits, authorized by Section 42 of the Internal Revenue Code, are intended to encourage the development of affordable housing. Crucially, the bill prohibits county assessors from including the value or amount of these federal or state low-income housing tax credits when calculating the property's fair cash value or the income it generates. To ensure consistency, county assessors are required to establish a formal process for determining capitalization rates, which are used in the income-approach method, based on real project and investor data. Additionally, property owners who utilize these tax credits must provide written notice to the county assessor about this financing by January 1st of the first year the property is subject to assessment after receiving the tax credit allocation. This bill will take effect on January 1, 2027.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb4485&Session=2600