Property Tax Alert: Idaho

April 2006

The value of federal tax credits for Idaho property tax purposes should be considered when determining the market value of low-income housing developments. The taxpayer contended that the tax credits were a contract right and excluded from consideration in the valuation of real property. The state, however, has no power to create federal tax credits and, thus, the tax credits cannot be created by contract. The tax credits are better characterized as rights and privileges belonging to the land under the statutory definition of "real property" and do not exist separate from an ownership right in the low-income housing. Therefore, because the tax credits are rights and privileges that directly relate to the real estate, they are properly considered in assessing the value of low-income housing.

Please contact Rash & Associates for more information.