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2012 SESSION

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SB 73 Residential rental apartments; appeal of real property assessments, fair market value.

Introduced by: John C. Watkins | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Real property tax; valuation of residential rental apartments.  Requires that, in any appeal to a board of equalization concerning the fair market value of residential apartments in excess of four units, the board use the income approach to valuation, unless certain specified exceptions exist. Criteria to be used in making this determination include actual gross income generated, losses due to vacancies, collection losses, and rent concessions, as well as actual operating expenses and expenditures. The bill contains an emergency clause and is effective for tax years beginning on or after January 1, 2012. The bill is identical to HB 1073.

SUMMARY AS PASSED SENATE:

Appeal of assessment of residential rental properties. Provides that in an appeal of an assessment of real property containing more than four residential units, certain criteria relating to fair market value shall be considered. These criteria include actual gross income generated, actual operating expenses and expenditures, and any other evidence relevant to determining fair market value. Evidence as to fair market value presented by the property owner shall be considered by the real estate assessor in his property assessment. The bill also provides that the income approach shall be used in assessing such property.

SUMMARY AS INTRODUCED:

Assessment of residential rental properties. Establishes criteria by which an assessor shall determine fair market value for real estate used in whole or in part as residential rental property as defined by ordinance or the locality. Criteria include actual gross income generated, losses due to vacancies, collection losses, and rent concessions as well as actual operating expenses and expenditures. Evidence as to fair market value presented by the property owner shall be considered by the real estate assessor in his property assessment.