Alabama Must Consider LIHTC Restrictions in Property Tax Assessment

In Alabama, a court recently ruled against the state’s Department of Revenue (DOR) concerning its policy of disregarding LIHTC extended-use restrictions when determining assessment of value for property taxes. The Alabama Affordable Housing Association (AAHA) had filed a lawsuit arguing the DOR was wrong in treating low-income housing incentives as taxable assets. The Circuit Court of Jefferson County ruled in favor of the AAHA. The ruling said counties “must take into account the legal restrictions on rents and use and operation of such properties.”