Tenn. Comp. R. & Regs. 0600-10-.03 - DETERMINING VALUE FOR LIHTC PROPERTY

(1) The taxable value of LIHTC property shall consist of a restricted use component and a component representing the economic benefit of the subsidy to the property owners.

(2) The restricted use component shall be the income approach value resulting from using actual rents paid or payable by needy tenants and by such factors for vacancy, collection loss, expenses, reserves, and capitalization rates as are typically experienced by comparable properties in the area in which the property is located or economically comparable areas.

(3) With regard to the value of the subsidy component, a taxpayer of low-income housing tax credit property shall elect to either:

(a) Have the assessor include in the assessor's annual appraisal the present value of all future tax credits for each of the unused tax credit years remaining on the property; or

(b) Have the assessor include in the assessor's annual appraisal, instead of the present value of all future tax credits, the average annual present value of the credit as calculated in (3)(a) above, based on the Compliance Period provided for in the Land Use Restriction Agreement for the particular property being valued.

Notes

Tenn. Comp. R. & Regs. 0600-10-.03

Original rule filed April 21, 2016; effective 7/20/2016.

Authority: T.C.A. §§ 4-3-5103 and 67-1-305.