On February 1, the Indiana State Senate adopted Senate Bill 344, which requires county assessors to include the value of the federal low-income housing tax credit (LIHTC) in the assessed value of tax credit properties. This is a direct reversal of the methodology adopted by the General Assembly in 2004, which prohibited assessors from considering the value of the LIHTC. As a result, annual property taxes on tax credit properties in Indiana will increase dramatically and worsen the financial stress of the properties. The bill also sunsets a number of community development-related tax credits after December 31, 2016.
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