FINAL BILL REPORT

 

 

                              2SSJR 8212

 

 

BYSenate Committee on Ways & Means (originally sponsored by Senators Lee, Williams and Fleming)

 

 

Amending the Constitution to allow property devoted to low-income housing to be taxed based on its current use value.

 

 

Senate Committee on Economic Development & Labor and Committee on Ways & Means

 

 

House Committe on Housing

 

 

Rereferred House Committee on Revenue

 

 

                        AS PASSED LEGISLATURE

 

BACKGROUND:

 

Under the state Constitution, real property must be taxed according to the valuation of its highest and best use.  Exceptions to this rule are listed in Article VII, Section 11 and include farm and agricultural land, standing timber and timberlands, and open space lands. 

 

Taxing residential real estate at highest and best use, particularly inner city multi-family housing, encourages owners to redevelop their property to secure the highest possible revenue in order to cover the tax burden.  This rule discourages owners of low-income housing from maintaining their property for that use.

 

SUMMARY:

 

Property devoted primarily to low-income housing, containing five or more low-income dwelling units, and that complies with health and safety standards is added to the list of properties in Article VII, Section 11 of the state Constitution that may be assessed at an amount based on their current use.  Enabling legislation and approval by the voters is required.

 

 

VOTES ON FINAL PASSAGE:

 

     Senate   28   18

     Senate   46    3 (Senate reconsidered)

     House 92  2 (House amended)

     Senate          (Senate refused to concur)

     House           (House refused to recede)

 

      Free Conference Committee

     House 94  3

     Senate   46    0