tax exemption; public
housing
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Committee on Ways & Means |
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Committee on Counties & Municipalities |
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Caucus and COW |
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As Passed the House |
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SB 1124 broadens the property tax exemptions for low income housing owned and operated by public housing authorities and nonprofit organizations.
History
Currently, property that is owned by a community service organization that is used for nonprofit purposes and serves indigent and afflicted individuals is exempt from property taxation. Low income housing owned by a public housing authority is also exempt from property taxation. However, due to different interpretations of the definition of “indigent” by county assessors, these properties have been taxed differently from county to county.
Recent changes at the federal level were enacted to allow public/private partnerships to encourage new construction and renovation of public housing. However, when a public housing authority currently partners with a private entity, the property loses it’s tax-exempt status and is classified as class 6 (leased residential) with a 10% assessment ratio. This bill will allow public housing that is operated as a “mixed finance public housing facility” to be classified as class 9 which has an assessment ratio of 1%.
SB 1124 also clarifies the definition of “indigent” for property taxation purposes.
JLBC staff estimates the cost to the general fund will be between $348,100 and $613,000 in FY 2004.
· Provides for public housing property that is operated as a mixed finance public housing facility qualifies as a class 9 property classification, which is assessed at one percent.
· Expands the tax exemption for property of charitable community service organizations to include a single member limited liability company that qualifies as a charitable organization under the Internal Revenue Code 501 (c) (3).