Legislative Updates
By Staci Hardy, VP Internal Audit & QC Manager
LERETA’s compliance team regularly monitors and tracks statewide property tax legislation that impacts tax service for our customers. This quarter we are including details on introduced legislation and the progression of seven new bills that we are following. None of these will have any impact to LERETA’s processes at this time, but they are beneficial to review.
This legislative update is provided by LERETA as a service to its customers. It should not be construed as legal advice or legal opinion. The contents are intended for general informational purposes only, and you are urged to consult your own attorney regarding the law and specific legal questions you have. LERETA does not guarantee the accuracy, reliability or timeliness of the information contained in its legislative updates.
Monitored Bills
California
CA AB 2353 Property Tax
Status: Enrolled on August 27, 2024
Update: September 5, 2024 – Enrolled and presented to the Governor
Summary
Section 4985.05 is added to the Revenue and Taxation Code, to read:
(a) Notwithstanding any other law, but except as provided in subdivision (b), a property owner shall not be liable for interest or penalties, nor shall the tax collector take or continue any collection action, with respect to any ad valorem property taxes levied upon a property if the property owner satisfies all of the following requirements annually while receiving the benefit:
(1) The property owner supplies evidence to the tax collector that the property owner has submitted to the county assessor an application for an exemption pursuant to subdivision (g) of Section 214, including, but not limited to, the information required under Section 254.
(2) The property owner supplies evidence to the tax collector that they received a reservation of tax credits from the California Tax Credit Allocation Committee or an award of funds from the Department of Housing and Community Development, including a copy of the reservation letter or notice of award.
(3) Facilities are in the course of construction, as defined in Section 214.2 of the Revenue and Taxation Code.
(b) The treatment of delinquent installments of ad valorem property tax and associated penalties and interest under subdivision (a) shall not apply to any of the following:
(1) The prorated portion of any delinquent installments of ad valorem property taxes that are related to improvements not eligible for an exemption or to residential units not restricted as affordable to lower and very low-income households pursuant to the reservation of tax credits from the California Tax Credit Allocation Committee or the award of funds from the Department of Housing and Community Development.
(2) Any late or delinquent installments of ad valorem property taxes related to property which the assessor, upon completion of its review of the application for exemption pursuant to subdivision (g) of Section 214, has deemed ineligible for exemption.
(3) Any delinquent installment of ad valorem taxes for property that, after four years from the date the claim for the welfare exemption was filed with the assessor, has not been developed in a manner that would make the property eligible for exemption under subdivision (g) of Section 214.
(c) An eligible property owner who is not liable for penalties or interest under this section shall provide verification of eligibility to the tax collector annually. The tax collector shall provide the list of eligible properties to the assessor.
(d) If an assessor deems an application ineligible for exemption, as described in paragraph (2) of subdivision (b), they shall make the notice required in paragraph (2) of subdivision (c) of Section 254.5 and provide a copy of the notification to the tax collector upon receipt of the annual eligibility list.
(e) Any bill, notice of deficiency, or other routine communication sent to the taxpayer from the tax collector shall not constitute a collection action under this section.
(f) This section shall apply to property tax installments that are due and payable from December 10, 2025, to April 10, 2031.
SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
Colorado
CO SB 108 Property Tax
Status: Introduced January 1, 2023 – 100% Progression
Update: June 5, 2023 – This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
Update: May 1, 2024 – Enrolled on April 23, 2024 – 75% progression. Action: April 23, 2024 – Sent to the Governor
Summary
Property tax relief by a temporary reduction in property taxes due, any local government may approve and certify a temporary property tax credit or temporary mill levy rate reduction as set forth in this section. A district, as definite in section 22-54-103(5), may not reduce a mill levy below the minimum amounts provided in section 22-54-106. The procedures set forth in this section shall be deemed to be a reasonable method for effecting refunds in accordance with section 20 of article X of the state constitution and for providing temporary property tax relief. A temporary reduction in property taxes due for the purpose of property tax relief is subject to annual renewal.
Colorado
CO SB 108 Property Tax
Status: Introduced January 31 2023-100% Progression
Update: Passed May 1, 2024
Summary
PROPERTY TAX RELIEF BY A TEMPORARY REDUCTION IN PROPERTY TAXES DUE, any local government may approve and certify a temporary property tax credit or temporary mill levy rate reduction as set forth in this section. A DISTRICT, AS DEFINED IN SECTION 22-54-103 (5), MAY NOT REDUCE A MILL LEVY BELOW THE MINIMUM AMOUNTS PROVIDED IN SECTION 22-54-106. The procedures set forth in this section shall be deemed to be a reasonable method for effecting refunds in accordance with section 20 of article X of the state constitution AND FOR PROVIDING TEMPORARY PROPERTY TAX RELIEF. A TEMPORARY REDUCTION IN PROPERTY TAXES DUE FOR THE PURPOSE OF PROPERTY TAX RELIEF IS SUBJECT TO ANNUAL RENEWAL
Illinois
IL HB 5878 Property Tax
Status: Introduced September 17, 2024-25% Progression
Update: September 17, 2024 – Filed with the Clerk
Summary
Amends the Property Tax Code. Provides that certain homestead property that is owned by a person who will be 67 years of age or older during the taxable year is exempt from property taxes levied by a school district. Effective immediately.
Illinois
IL HB 1074 Property Tax
Status: Introduced January 12, 2023-25% Progression
Update: Added Co-Sponsor Rep. Dennis Tipsword, Jr. 8/12/24
Summary
Amends the Property Tax Code. Provides that, for taxable year 2024, the maximum income limitation for the senior freeze shall be $73,700 for all qualified property (currently, $65,000). Provides that the maximum income limitation shall be adjusted each year according to the change in the Consumer Price Index for All Urban Consumers. Effective immediately.
Illinois
IL HB 612 Property Tax
Status: Passed July 1, 2024-100% Progression
Update: Effective Data 7/1/24
Summary
Amends the Property Tax Code. In a Section granting a homestead exemption to veterans with disabilities, provides that property that is used as a qualified residence by a veteran who was a member of the United States Armed Forces during World War II is exempt from taxation regardless of the veteran’s level of disability. Provides that a veteran who qualifies as a result of his or her service in World War II need not reapply for the exemption. Makes changes concerning service-connected disabilities. Makes changes concerning surviving spouses. Effective immediately.
Illinois
IL HB 3303 Property Tax
Status: Introduced 2/17/23 – 25% Progression
Update: 5/1/24 Added Co-Sponsor Rep. Kimberly Du Buclet
Summary
Amends the Property Tax Code. In a Section granting a homestead exemption to veterans with disabilities, provides that property that is used as a qualified residence by a veteran who was a member of the United States Armed Forces during World War II is exempt from taxation regardless of the veteran’s level of disability. Provides that a veteran who qualifies as a result of his or her service in World War II need not reapply for the exemption. Makes changes concerning service-connected disabilities. Makes changes concerning surviving spouses. Effective immediately.
Massachusetts
MA HB 3735 Property Tax
Status: Engrossed January 2, 2024 – 50% Progression
Action: 9/19/24 – Read third and passed to be engrossed
Summary
That the town of Truro be authorized to establish a program to reduce property tax liability in exchange for volunteer services for persons with disabilities. Revenue.
New Jersey
NJ AB 3772 Property Tax
Status: Passed on July 10, 2024 – 100% progression
Update: 2024-07-10 – Approved P.L.2024, c.39.
Summary
Revises process for property tax lien holder to foreclose right to redeem a property tax lien; allows property owner to protect remaining equity.
New Jersey
NJ AB 418 Property Tax
Status: Introduced on January 9 2024 – 25% progression
Update: 2024-01-09 – Introduced, Referred to Assembly State and Local Government Committee
Summary
Permits municipalities to issue two separate property tax bills to property taxpayers; requires fire districts, school districts, and county governments to share in burden of property assessment appeal refunds.
New York
NY SB 5213 Property Tax
Status: Introduced on February 27th, 2023 – 25% progression
Update: 2024-06-03 – PRINT NUMBER 5213A
Summary
Relates to tax lien foreclosure; establishes senior, disabled, and veteran homeowner real property tax assistance program; establishes installment plans for certain real property taxes.
New York
NY AB 4702 Property Tax
Status: Introduced February 22nd, 2023-25% Progression.
Update: Referred to real property taxation on 03/01/2024.
Summary
Establishes provisions for real property tax lien transfers to assist homeowners facing foreclosure based on unpaid taxes; repeals existing provisions relating to acceptance of taxes from certain loan corporations.
New York
NY AB 3957 Property Tax
Status: Introduced February 8th, 2023, -25% Progression.
Update: referred to real property taxation on 03/01/2024.
Summary
Authorizes the city of Albany to add unpaid housing code violation penalties, costs and fines to such city’s annual tax levy.
New York
NY AB 3097 Property Tax
Status: Introduced February 2nd 2023-25% Progression.
Update: Referred to real property taxation on 03/01/2024.
Summary
Authorizes municipalities in the county of Rockland to add unpaid housing code violation penalties, costs and fines to such municipalities’ annual tax levy in accordance with applicable law.
New York
NY AB 1130 Property Tax
Status: Introduced January 13th 2023-25% Progression.
Update: Referred to real property taxation on 03/01/2024.
Summary
Authorizes municipalities in the county of Orange to add unpaid housing code violation penalties, costs and fines to such municipalities’ annual tax levy in accordance with applicable law.
New York
NY AB 248 Property Tax
Status: Introduced January 4th 2023-25% Progression
Update: referred to real property taxation on 03/01/2024.
Summary
Authorizes municipalities to treat unpaid fines for building code and fire code violations as unpaid real property taxes and to impose a tax lien therefor.
North Carolina
NC BB 802 Property Tax
Status: Passed on July 8th, 2024 – 100% progression
Action: 2024-07-08 – Ch. SL 2024-44
Summary
This Article shall be known and may be cited as the “Commercial Property Assessed Capital Expenditure (C-PACE) Act.” This Article authorizes the establishment of a statewide C-PACE Program that local governments may voluntarily join to allow willing owners of commercial, industrial, agricultural, nonprofit, and multifamily residential properties with five or more dwelling units to obtain low-cost, long-term financing for qualifying improvements, including energy efficiency, water conservation, renewable energy, and resilience projects, secured by an assessment and lien authorized by this Article. The State finds that a valid public purpose exists because the use of a C-PACE Program creates an additional financing mechanism for property owners to use private funds to finance improvements to their eligible property, thereby driving economic development by creating a diversity of jobs in the resilience and clean energy sectors of the economy. The assessment requires minimal upfront costs and provides a more accessible financial mechanism to fund improvements that will increase the tax value of the affected properties at minimal administrative cost to local governments. C-PACE improvements allow property owners to save on their utility bills because the improvements lead to energy or utility savings and will result in improved indoor air quality or increased resilience, which will increase the ability of communities and local governments to respond to natural disasters and improve public health.
