UPDATED june 2021
100% Property Tax Exemption for Certain Low Income Housing Tax Credit Properties
A new Florida law increases the 50% exemption for certain older low-income housing tax credit (“LIHTC”) properties to a 100% exemption beginning in the 2022 tax year. Tax exemptions for LIHTC properties have changed often in recent years. LIHTC properties are financed through the issuance of tax credits and in exchange, the owners agree to restrict the property for a number of years to rent only to tenants that are below certain income thresholds and to charge rent in accordance with the HUD guidelines.
From 2009 through 2013, LIHTC properties were fully exempt. Then in 2013 that exemption was removed and they became taxable, although the restricted rents had to be recognized by the county property appraisers in valuation of the property for tax purposes. In 2018, the Florida legislature passed a law granting a 50% “discount” or exemption to LIHTC properties after their 15th year of operation, provided that they have at least 70 units. Starting next year, these older LIHTC properties will be entitled to a full 100% exemption. This change represents a growing recognition that there is a need for more affordable housing.
Julie Schwartz, Esq.
Rennert Vogel Mandler & Rodriguez, P.A.
American Property Tax Counsel (APTC)