Freedom Heights contends that the trial court erred by finding that “the income approach is inapplicable and may not be used based on the current structure of the tax credits which does not provide any actual income to the taxpayer.” We disagree.
[. . .]
In Heron Lake II Apts. v. Lowndes County Bd. of Tax Assessors, 306 Ga. 816 (833 SE2d 528) (2019) (“Heron Two”), the Supreme Court explained that OCGA § 48-5-2 (3) (B) (vii) (I) and (II) “tell tax assessors how they can use the sales comparison and income approaches in determining the fair market value of Section 42 properties” and held that low-income housing tax credits do not constitute “actual income” under OCGA § 48-5-2 (3) (B) (vii) (II).
[. . .]
As construed by the Supreme Court in favor of its constitutionality, OCGA § 48-5-2 (3) (B) (vii) (II) limits the applicability of the income approach to “circumstances where a tax assessor could show that LIHTCs ‘generate actual income.’ ” Heron Two, 306 Ga. at 827 (4). And, as currently structured, “LIHTCs … do not constitute ‘actual income’ for the purposes of OCGA § 48-5-2 (3) (B) (vii) (II).” Id. Consequently, as LIHTCs are currently structured, tax assessors may not use the income approach in determining the fair market value of Section 42 properties, and the trial court did not err by finding that “the income approach is inapplicable and may not be used based on the current structure of the tax credits which does not provide any actual income to the taxpayer.”
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