Introduced Version
Senate Bill 18 History
OTHER VERSIONS -
Committee Substitute (1)
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 18
(By Senators Jenkins and McCabe)
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[Introduced February 13, 2013; referred to the Committee on the
Judiciary; and then to the Committee on Finance.]
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A BILL 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;
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 consider:
(1) The actual rents received and the impact of rent
restrictions applicable to the property;
(2) The expenses associated with the operation of the
property; and
(3) The impact of rent restrictions on transfer of title and
other restraints on alienation of the property. Federal or state
income tax credits allowed with respect to the property may not be
treated as a part of the property or as income attributable to it.
(b) 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.
(c) 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) Develop and publish on an annual basis the capitalization
rate to be used by the assessors for valuing such affordable rental
housing.
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.