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Owner warns of steep tax assessments on LIHTC properties; committee considers HR 1392 to change assessment rules
Summary
Property owner Rob Haley testified that three low-income housing tax credit (LIHTC) properties in Bleckley County face assessments far above net operating income, and Representative Leverett presented HR 1392 to let voters empower the General Assembly to prescribe assessment treatment for these unique properties; lawmakers discussed an income-based assessment approach but did not adopt a final policy in committee.
Representative Leverett (speaker 11), the sponsor, told the committee HR 1392 would give voters the opportunity to empower the General Assembly to prescribe assessment methods for properties financed with low-income housing tax credits (LIHTC). Leverett described decades of litigation and legislative attempts and said assessors in several counties have been valuing LIHTC properties using methods that produce assessments far above their operating income.
Property owner Rob Haley (speaker 13) testified that his three properties in Bleckley County (Haywood Gardens — a 50‑unit family complex; Haywood Daisy Senior — a 60‑unit senior complex; and Haywood Gardens 2 — a 50‑unit family complex) showed a 2024 net operating income (NOI) of roughly $77,000 while the county assessed those properties at values producing tax bills that exceeded NOI (Haley cited pre-appeal tax bills of about $109,000 for one property). He said one development was assessed as if it were complete when it was only 25% complete, leaving no income to cover taxes.
Haley urged the committee that taxing should reflect the income approach rather than replacement-cost-plus-credit accounting. Representative Williamson (speaker 12) and others pressed Haley on unit rents (Haley said units generally rent for about $500–$800 depending on area and AMI bands) and average 1‑bedroom units around 750 square feet. Lawmakers noted that Mississippi has enacted a statutory income-based approach; Leverett and other supporters said a voter-approved change would permit the General Assembly to adopt a uniform assessment formula.
The committee considered a motion to pass HR 1392; the transcript shows a voice vote with "aye" and at least one dissent recorded but does not provide a full roll-call tally. No final uniform assessment method was adopted in committee; the record shows the committee moved the measure forward for further consideration and said voters would be asked to approve a constitutional change before the General Assembly could prescribe assessment rules.
