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Committee advances bill to exclude federal low-income tax credits from property valuation
Summary
HB 753 would prevent assessors from adding federal low-income housing tax credits into property valuation, aiming to preserve the economics of affordable housing development in rural Tennessee; the committee advanced the bill 19-3.
A measure intended to protect the economics of affordable-housing development in rural Tennessee moved out of the Finance, Ways and Means Committee April 20.
Chairman Faison described House Bill 753 as an attempt to ensure that federal low-income housing tax credits remain an incentive rather than a taxable value added to property assessments. "This is my attempt to say tax the development for what it's worth, but don't add into the valuation of that low-income housing the incentive that was given from the federal government for you to build it," Faison said.
Representative Freeman and others supported the bill, arguing that assessors were treating federal tax credits as part of a property's taxable valuation and thereby undermining the incentive for rural affordable housing. Representative Garrett asked clarifying questions about whether the bill created new tax credits or simply excluded the existing federal incentive from valuation; Chairman Vaughan clarified the bill does not create new credits, it only prevents taxing those incentives into assessed value.
After discussion the committee voted 19-3 to move HB 753 to Calendar and Rules.
The bill will be considered next by Calendar and Rules.
