The Ongoing Battle of Property Tax Assessments on LIHTC Properties in Georgia

The ongoing battle over property tax assessments on low-income housing tax credit (LIHTC) properties in Georgia has caused significant distress and financial burdens for the LIHTC industry. The issue stems from the struggle to determine the fair assessment approach for LIHTC properties. County assessors have had difficulty comprehending the value of LIHTC credits and how they should be accounted for in property assessments, leading to assessments that surpass those of market-rate properties. Both county assessors and the LIHTC industry have made numerous attempts to clarify the assessment approach through legal battles and lobbying for favorable legislation, but the issue persists.

The Georgia Affordable Housing Coalition (GAHC) has been at the forefront of the battle, with two cases before the Supreme Court. While a 2016 Supreme Court decision did not favor the GAHC, a 2019 decision challenged the constitutionality of legislation and resulted in a more favorable outcome. However, county assessors across Georgia continue to find ways to maximize tax revenue from LIHTC properties, further complicating the issue. Recently, two cases before the Court of Appeals have added more complexity, with one ruling striking down the use of the income approach and taxing the credits, while another case awaits a ruling from the Supreme Court.

Considering these recent court decisions, the GAHC is urging the LIHTC industry to swiftly appeal to the Supreme Court. They are calling for financial support from their members to cover legal fees, with the aim of having Governor Roy Barnes represent the industry. The GAHC emphasizes the importance of a united front to protect LIHTC property owners from unjust taxation and ensure the continued provision of affordable housing in Georgia. Our local team at Ryan will continue to monitor the situation and is available for any questions.