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• • Bulletin PTA -98-004 From: John Everton Date: June 3, 1998 To: Property Appraisers Tax Collectors FLORIDA DEPARTMENT OF REVENUE PROPERTY TAX BULLETIN it ,• LEGISLATION CONCERNING LOW INCOME HOUSING TAX CREDIT DEVELOPMENTS The 1997 Legislature enacted Chapter 97-167, Laws of Florida, effective July 1, 1997. The law, in part, amends provisions on low-income housing tax credit (LIHTC) developments, section 420.5099(5) Florida Statutes. It describes the use of certain appraisal methods only when considering income, in assessing a LIHTC development for ad valorem taxation under section 193.011, Florida Statutes. The law states, in part: For purposes of implementing this program in Florida and in assessing the property for ad valorem taxation under s. 193.011, neither the tax credits, nor financing generated by tax credits shall be considered as income to the property, and the rental income from rent restricted units in a low-income tax credit development shall be recognized by the property appraiser. See Chapter 97-167, section 19, Laws of Florida (1997). By referring to section 193.011, the new law applies to property taxes. It also prohibits the inclusion of income credits for a subsidized low income property in the income from the property when considering the income approach. It further requires that when appraising such property under the income approach, actual rents be recognized by the property appraiser. This Bulletin supersedes Bulletin 4DAV-96-009 dated August 13, 1996. This information is furnished by the Department of Revenue to advise interested parties of legislative action taken during the 1997 session. If further assistance or clarification is needed, please contact Kathy Henley at (850) 488-3335. Mr. Nolte explained that it means the normal method of appraising cannot be used on these properties and he believed the intent of the law is to give an ad valorem tax break to this kind of development. He warned that if that happens, and there's a normal amount of services required for the development, someone else is going to be picking up their fair share of the burden. It was determined that no one else wished to be heard and the Chairman closed the public hearing. June 9, 1998 63