Property Tax - Low-Income Housing Tax Credit - Valuation of Property

HB 585 modifies Maryland's property tax rules for commercial properties developed under the federal Low-Income Housing Tax Credit (LIHTC) program. It requires county assessors to value these properties using the property's actual or anticipated net operating income (after expenses), capitalized at standard market rates for similar properties, plus a 1.5-2% adjustment for affordability restrictions. Crucially, it prohibits assessors from counting the federal tax credits themselves as income when calculating value. This directly affects property assessors, developers of LIHTC properties, and owners of such housing by changing how their property taxes are calculated. The law takes effect June 1, 2025, for taxable years after June 30, 2025.