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 nine 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.
Recently Passed Bills
Michigan
MI SB 784 Property Tax
Status: Passed on June 23, 2022; Enacting section 1. This amendatory act takes effect December 31, 2022
Summary
Property tax: exemptions; disabled veteran exemption; replace with process to apply for an income tax credit. Amends sec. 7b of 1893 PA 206 (MCL 211.7b).
Hawaii
HI HB 2179 Property Tax
Status: Passed on June 17, 2022
Summary
Authorizes the Director of Taxation to apply to the circuit court to convert certain tax liens into enforceable civil judgments. If a lien imposed by subsection (b) is properly recorded as authorized under subsection (f), and three hundred sixty-five days have elapsed from the date of recording with no response or action by the taxpayer against whom the lien was recorded, the director may apply to the circuit court to have the lien converted into a civil judgment. The circuit court shall issue a civil judgment for an amount equivalent to the value of the lien. If a lien is converted to a civil judgment under this subsection, interest under section 231-39(b)(4) shall cease to accrue after the period to collect the unpaid amount has expired under the applicable statute of limitations or agreement.”
Indiana
IN SB 62 Property Tax
Status: Passed on March 15, 2022; Effective July 1, 2022
Summary
Sale of tax sale properties to nonprofits. Permits a county treasurer in a county having a consolidated city to offer for sale a tract or item of real property on the county auditor’s tax sale list: (1) that is not used as a person’s principal place of residence and receiving a homestead standard deduction for the most recent assessment date;(2) that is unsold after two or more public sales; and (3) for which a set off has not been obtained against the delinquent debt owed on the real property; to an eligible nonprofit entity prior to a regularly scheduled tax sale. Provides that not more than 5% of the real property on the tax sale list may be sold to eligible nonprofit entities. Requires an eligible nonprofit entity to file certain information with the county executive not later than 45 days prior to the tax sale in order to participate in an early sale. Requires, before January 1, 2023, and before each January 1 thereafter, the county executive to provide an annual report to the legislative council concerning the sale of tax sale properties to eligible nonprofit entities.
Colorado
CO SB 238-2023 And 2024 Property Tax
Status: Passed on May 16, 2022; Effective 2023
Summary
Concerning reductions in real property taxation for only the 2023 and 2024 property tax years, and, in connection therewith, reducing the assessment rates for certain classes of nonresidential property and all residential property and the amount of actual value to which the rate is applied for all residential real property and commercial property for 2023; reducing the assessment rates for all multi-family residential real property to a set amount for 2024; reducing the assessment rates for all residential real property other than multi-family residential real property for 2024 by an amount determined by the property tax administrator to cumulatively with the other provisions of the bill reduce statewide property tax revenue for 2023 and 2024 by a specified amount; reducing the assessment rates for real and personal property that is classified as agricultural or renewable energy production property for 2024; and requiring the state to reimburse local governments, excluding school districts, in 2024 for 2023 reductions in their property tax revenue resulting from the bill.
New Hampshire
NH HB383
Status: Passed on April 26, 2021; Effective 04/01/22
Summary
Relative to the quarterly or semi-annual collection of taxes in certain municipalities.
Maine
ME LD647
Status: Passed on April 25, 2022; Effective immediately
Summary
An Act To Expand Eligibility for the Veterans’ Property Tax Exemption to include the period from February 1, 1955, to February 27, 1961.
Monitored Bills
Texas
TX HB 740 Property Tax
Status: Introduced Nov 16th 2022-25% Progression
Summary
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 33.065(a), (f), and (g), Tax Code, are amended to read as follows:
(a) An individual is entitled to defer collection of a tax or abate a suit to collect a delinquent tax imposed on the portion of the appraised value of property the individual owns and occupies as the individual’s residence homestead that exceeds the sum of: (1) 105 percent of the appraised value of the property for the preceding year; and (2) the market value of all new improvements to the property.
Texas
TX HB 721 Property Tax
Status: Introduced Nov 16th 2022-25% Progression
Summary
Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads. A tax lien remains on the property and interest continues to accrue during the period collection of taxes is deferred or abated under this section. The annual interest rate in effect for each calendar year or portion of a calendar year during the deferral or abatement period is the lower of the five-year Constant Maturity Treasury Rate reported by the Federal Reserve Board as of January 1 of that year or five percent instead of the rate provided by Section 33.01.
Texas
TX SB 194 Property Tax
Status: Introduced Nov 14th 2022-25% Progression
Summary
Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual’s residence homestead.
Massachusetts
MA HB 5391 Property Tax
Status: Introduced Nov 17th 2022-25% Progression
Update: Hearing scheduled for 12/06/2022
Summary
That the town of Westborough be authorized to approve certain additional tax exemptions of qualifying senior residents.
Ohio
OH HB 726 Property Tax
Status: Introduced October 3rd 2022-25% Progression
Summary
To amend section 323.155 and to enact section 319.303 of the Revised Code to allow certain counties to authorize a property tax freeze for certain owner-occupied homes.
New Jersey
NJ SB 2526 Property Tax
Status: Introduced May 12th 2022-25% Progression
Update: 2022-09-29 – Referred to Senate Budget and Appropriations Committee
Summary
Permits certain local units and authorities to reduce water, sewer, and stormwater fees and other charges for low-income persons.
Delaware
DE HB 389 Property Tax
Status: Introduced April 28th 2022-25% Progression
Summary
This Act removes the up to 10% increase in school property taxes allowed after reassessment.
New Jersey
NJ SB 1777 Property Tax
Status: Introduced February 28th 2022-25% Progression
Update: 2022-06-02 – Referred to Senate Budget and Appropriations Committee
Summary
This Act allows gross income tax refunds to be credited against taxpayer’s delinquent local property taxes.
New Jersey
NJ SB 259 Property Tax
Status: Introduced Jan 11th 2022-25% Progression
Update: 2022-09-29 – Referred to Senate Budget and Appropriations Committee
Summary
Converts senior freeze reimbursement into credit applied directly to property tax bills.
