ENROLLED
Senate Bill No. 696
(By Senator Yoder)
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[Passed March 7, 2008; in effect ninety days from passage.]
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AN ACT to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-3-1c, relating to
the method of appraising certain affordable multifamily rental
housing property for ad valorem property tax purposes.
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.
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 Sections 42 and 142(d), Title 26 of the United States Code and Sections 221(d)(3), 236, 241(f) or 983, Title 24 of
the Code of Federal Regulations, for ad valorem property tax
purposes, the assessor shall use the income method and, in doing
so, shall take into account: (1) The rents and the impact of rent
restrictions applicable to the property; (2) the expenses,
including the impact of any extraordinary expenses, associated with
the operation of the property; and (3) the impact of restrictions
on transfer of title and other restraints on alienation of the
property:
Provided, That federal or state income tax credits
allowed with respect to such property shall not be treated as a
part of the property or as income attributable to it. For real
property as to 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.