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SB 598

Permitting judges to refer parents to prosecuting attorney for making certain false allegations in child custody proceedings

2025 Regular Session Introduced by Vince Deeds and 2 co-sponsors

The bill requires LIHTC properties to be valued using income approach with specific adjustments for affordability, and mandates DHCD to notify SDAT within 30 days of LIHTC closing.

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Bill Summary · SB 598

SB 598 — Property Tax: Low‑Income Housing Tax Credit — Valuation of Property

Status: Approved by the Governor — Chapter 68 (2025)

Purpose

SB 598 clarifies how county assessment supervisors must value commercial real property developed using the federal Low‑Income Housing Tax Credit (LIHTC, §42 IRC). It (1) prescribes specific income‑approach evaluation steps for LIHTC projects and (2) requires the Department of Housing and Community Development (DHCD) to notify the State Department of Assessments and Taxation (SDAT) when a LIHTC award is closed and the regulatory agreement executed.

Key provisions

  • Valuation requirement (Income approach): When valuing commercial property developed under §42 of the Internal Revenue Code, the county supervisor of assessments must evaluate:
    • the impact of rent restrictions, affordability requirements, and other §42‑related restrictions;
    • the actual or anticipated net operating income (NOI) attributable to the property, capitalized at the prevailing market capitalization rate for conventional multifamily properties in the same geographic area; and
    • an upward adjustment of the capitalization result by between 1.5% and 2% to account for affordability restrictions and other encumbrances imposed under §42.
  • Non‑inclusion of tax credits as income: The supervisor may not treat federal LIHTC income tax credits under §42 as income attributable to the real property for valuation purposes.
  • Notification duty: Within 30 days of closing and execution and delivery of the LIHTC regulatory agreement, DHCD must notify SDAT that the property has been awarded LIHTC so SDAT can proceed with valuation under the new guidance.

Who is affected

  • County supervisors of assessments and SDAT: must apply the specified valuation evaluation for LIHTC projects.
  • DHCD: must notify SDAT within 30 days of LIHTC closing/registration.
  • Owners/developers of LIHTC‑financed multifamily housing: their property assessments will be determined under the specified approach.
  • Local governments and taxpayers: assessment outcomes may change for LIHTC properties depending on how the NOI capitalization and adjustment are applied.

Fiscal and implementation notes

  • Effective date: takes effect June 1, 2025; applies to taxable years beginning after June 30, 2025.
  • Fiscal impact: State and local agencies reported no significant fiscal impact; DHCD can perform the notification with existing resources (per fiscal analysis).

Legislative history

  • Introduced (Senate) January 23, 2025 (Sen. Hettleman).
  • Passed and enacted as Chapter 68; approved by the Governor April 8, 2025.
  • Cross‑file/companion: HB 585.

This bill standardizes assessment treatment for LIHTC properties and creates a formal notice channel so SDAT is informed promptly when a property becomes subject to LIHTC regulatory restrictions.

Compiled from official sources — confirm details with the bill’s official record.

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