Georgia Supreme Court: LIHTCs “Do Not Constitute Actual Income”

The Supreme Court of Georgia decided in Heron Lake II Apartments, LP et al. v. Lowndes County Board of Tax Assessors that LIHTCs do no constitute “actual income.” The decision centers around the argument that investors do not receive more money from anyone for tax credits rather, they merely pay less in taxes to the government. The Court ruled that tax assessors are not limited to using either the sales comparison or income approaches in determining the fair market value of LIHTC properties.