House considers bill clarifying how low-income housing tax credits and covenants affect property valuation

Representative Snow sponsored House Bill 87 to clarify whether low-income housing tax credits and long-term restrictive covenants should be treated as intangible elements when appraisers assess property value for property tax purposes. Snow told members that assessors and the appraisal standards board are split on the issue and that the Legislature should define how such credits and covenants are treated.

Members questioned whether the bill would "expose" federal tax credits to property tax, whether assessing them as intangible would reduce tax revenue, and which appraisal approach should govern. Snow and questioners agreed the appropriate method is an income approach to valuation for income-producing properties; the sponsor said the credit is a financing tool and should not be treated as contributing to market value. Representatives raised concerns about fiscal notes and whether excluding or including the credits would shift burdens among taxpayers.

The transcript shows multiple exchanges clarifying that the bill seeks to create uniform appraisal guidance because assessors across the state currently apply different practices. The House opened voting on House Bill 87 later in the day; the excerpt provided does not include the final recorded roll-call result.