Willow Bend Estates, LLC v. Humphreys County Board of Supervisors
166 So. 3d 494
| Miss. | 2013Background
- Willow Bend and Woodyard Gardens are LIHTC-funded, Section 42 housing developments in Mississippi.
- Mississippi Code §27-35-50(4)(d) requires use of the income-based appraisal method for true value of affordable rental housing.
- County used a cost-based valuation including federal tax credits rather than the mandated income approach.
- The LIHTC financing involves credits issued to developers, sold to third-party investors, with 30-year restrictions and rent limits.
- Disparities in assessed taxes under the two methods were substantial, prompting Willow Bend to seek declaratory and summary relief.
- Trial court ruled in favor of the county; on appeal, the issue was framed as whether the statute and related guidelines allow tax credit consideration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §27-35-50(4)(d) bars including tax credits in value. | Willow Bend: credits must be excluded under the statute. | Humphreys County: the statute is ambiguous or allows credit consideration. | Statute unambiguous; credits must be excluded. |
| Whether the income method is unconstitutional under Art. 4, §112 of the Mississippi Constitution. | Willow Bend argues uniform valuation methods are not required for these properties. | County asserts need for uniformity within class. | Constitutionality upheld; Legislature may limit valuation method for such properties. |
| Whether Rebelwood governs the case given its facts and timing. | Willow Bend distinguishes Willow Bend from Rebelwood because of liquidity and structure. | County relies on Rebelwood’s framework for subsidies in value. | Rebelwood does not control here; statute dictates method. |
Key Cases Cited
- Rebelwood, Ltd. v. Hinds County, 544 So.2d 1356 (Miss. 1989) (affects value by considering subsidies; supports uniform approach within class)
- Gen. Motors Corp. v. Miss. State Tax Comm'n, 510 So.2d 498 (Miss. 1987) (tax statutes read strictly as written; legislative policy governs)
- Piney Woods Country Life Sch. v. Shell Oil Co., 726 F.2d 225 (5th Cir. 1984) (courts defer to legislative directives on tax policy)