SENATE
HOUSE
JOINT
BILL STATUS
STATE LAW
REPORTS
EDUCATIONAL
CONTACT
home
home
Introduced Version Senate Bill 268 History

   |  Email
Key: Green = existing Code. Red = new code to be enacted
ole.gif

Senate Bill No. 268

(By Senators Jenkins and M. Hall)

____________

[Introduced January 8, 2014; referred to the Committee on the Judiciary; and then to the Committee on Finance.]

____________

 

 

 

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-3-1c, relating to providing the methods of appraising certain affordable, multifamily rental housing property for ad valorem property tax purposes; setting forth what the assessor is to consider; providing for confidentiality of information provided to the assessor; providing for treatment of federal or state tax credits; and granting rule-making authority.

Be it enacted by the Legislature of West Virginia:

    That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-3-1c, to read as follows:

ARTICLE 3. ASSESSMENTS GENERALLY.

§11-3-1c. Method of appraising affordable multifamily rental housing property.

    (a) In determining the true and actual value of improved real property containing four or more residential units operated, in whole or in part, as affordable rental housing in accordance with the provisions of Section 42 Title 26 of the United States Code and 42 U.S.C. §§221(d)(3), 236, 241(f) or 983, for ad valorem property tax purposes, the assessor shall use the cost approach or the income approach.

    (b) In using the income approach, the assessor shall consider:

    (1) The verified or audited actual rents received;

    (2) The verified or audited actual expenses incurred in the operation of the property, excluding mortgage interest and depreciation; and

    (3) A capitalization rate determined from recent actual sales of commercial property used for residential purposes in the same geographical area as the property to be valued and the net incomes actually realized from those properties over the next preceding three years.

    (c) In using the cost approach, the assessor shall:

    (1) Determine the amount of economic obsolescence resulting from the differences between the actual rents received and the unrestricted rents of similar units not subject to such restrictions in the same geographic area; and

    (2) Consider the impact of rent restrictions on transfer of title and other restraints on alienation of the property.

    (d) The information provided to an assessor under subsections (b) and (c) of this section is confidential pursuant to section twenty three, article one-a, chapter eleven of this code.

    (e) Federal or state income tax credits allowed with respect to the property may not be treated as contributing value to the property or as income attributable to it.

    (f) For real property which only a portion of the individual housing units are operated as affordable rental housing, as defined in Section 42 of the Internal Revenue Code of 1986, as amended, only that portion of the property is subject to the requirements of this section.

    (g) In addition to the powers and duties of the Tax Commissioner in other provisions of this article and this code, the Tax Commissioner has the power and duty to:

    (1) Propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code establishing a method to determine the appraised value of real property operated as affordable rental housing consistent with the provisions of this section;

    (2) Prescribe forms for annual reporting of income and expenses to be used by the assessors for valuing such affordable rental housing; and

    (3) Propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code establishing a method to determine the capitalization rate to be used in the income approach as defined in this section if insufficient data as to actual sales prices and net incomes is available.



    NOTE: The purpose of this bill is to provide for the method of appraising certain affordable, multifamily rental property for property tax assessment purposes. The bill also grants rule- making authority.


    This section is new; therefore, strike-throughs and underscoring have been omitted.

This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Email WebmasterWebmaster   |   © 2024 West Virginia Legislature **


X

Print On Demand

Name:
Email:
Phone:

Print