Senate Bill No. 688
(By Senators Jenkins and McCabe)
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[Introduced February 22, 2010; 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.
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
Sections 221(d)(3), 236, 241(f) or 983, Title 24 of the Code, 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:
Provided, That federal or state income tax credits
allowed with respect to such property may not be treated as a part
of the property or as income attributable to it.
(b) 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.
(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 for legislative approval, rules 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
This section is new; therefore, strike-throughs and
underscoring have been omitted.