ATLANTA — The Georgia Supreme Court will hear oral arguments next week in a case between a Hahira apartment complex and the Lowndes County Board of Tax Assessors.

Gateway Pines Hahira, LP, is the owner of an affordable housing apartment complex in Hahira. It is appealing a decision about the way the tax assessors valued the complex for property tax.

According to a summary from the Supreme Court, the Gateway Pines Apartments is a Section 42 development, which means it is eligible to receive federal and state tax credits in exchange for renting units to low-income tenants for below-market rates.

The tax assessors have used the “income approach” to determine the fair market value of properties that qualify for low-income housing tax credits. The income approach estimates a property’s value by determining the property’s projected future income stream.

The underlying lawsuit involves Gateway’s appeal of its 2018 tax assessment by the Lowndes County Board of Tax Assessors, the Supreme Court summary said. In that appeal, the Lowndes County Superior Court granted the board’s motion for partial summary judgment, concluding that the income approach cannot be applied to determine the fair market value of Section 42 properties under the Supreme Court’s 2019 decision in Heron Lake II Apts., LP v. Lowndes County Board of Tax Assessors, which interpreted a Georgia law regarding the income approach.

The Supreme Court granted Gateway Pines Hahira’s petition for certiorari, indicating it was particularly concerned with the following issue: “Are tax assessors permitted to use the income approach to determine the fair market value of a property with low-income housing tax credits?” 

Oral arguments are scheduled for 10 a.m. June 12. The court did not say when to expect a ruling.