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
Illinois
IL HB 3303 Property Tax
Status: Introduced February 17th 2023-25% Progression
Summary
Creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a county or municipality by ordinance after petition of a percentage of property owners or business owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district or on businesses within a business improvement district. Provides that the county or municipality shall contract with a district management association to administer or implement activities and improvements specified in the district plan. Contains provisions relating to district plans, formation of a district, district boundaries, issuance of bonds, terms and renewal of districts, amendment to district plans, governance of the district, reports of a district management association, dissolution, and legislative purpose. Limits the concurrent exercise of home rule powers. Defines terms. Effective 120 days after becoming law.
Illinois
IL SB 142 Property Tax
Status: Introduced January 24th 2023-25% Progression
Summary
Amends the Property Tax Code. Provides that buildings, structures, and improvements that are not permanently attached to the land are not considered property for the purposes of the Code. Effective immediately.
Nevada
NV SB 430 Property Tax
Status: Introduced March 30th 2023-25% Progression
Summary
An act relating to taxation; establishing a program to provide partial refunds of property taxes to certain persons who are 55 years of age or older; providing penalties; and providing other matters properly. relating thereto.
Nevada
NV AB 449 Property Tax
Status: Introduced March 30th 2023-25% Progression
Summary
An act relating to taxation; authorizing a taxpayer to obtain a credit against property taxes owed by the taxpayer under certain circumstances when an applicable partial abatement of taxes was not applied or claimed; and providing other matters properly relating thereto.
New York
NY AB 6268 Property Tax
Status: Introduced April 10th 2023-25% Progression
Summary
Grants a real property assessment freeze and property tax freeze to persons sixty-five years of age or older.
New York
NY AB 4702 Property Tax
Status: Introduced February 27th 2023-25% Progression
Summary
Relates to tax lien foreclosure; caps the interest rate charged on all taxes received after the interest free period and all delinquent taxes at 16% per year; creates a taxpayer bill of rights and requires compliance therewith by each county, city and town.
New York
NY AB 4702 Property Tax
Status: Introduced February 22nd 2023-25% Progression
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
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
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
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 1543 Property Tax
Status: Introduced January 12th 2023-25% Progression
Summary
Provides that any installment of real property tax due and payable in calendar year 2023 shall be due and payable by December 31, 2023; relates to the payment of taxes in installments to counties, towns, certain school districts and city school districts by senior citizens and physically disabled persons.
New York
NY AB 606 Property Tax
Status: Introduced January 5th 2023-25% Progression
Summary
Relates to authorizing counties to set interest rates imposed on late payment of property taxes and delinquencies and redemption of property subject to more than one tax lien.
New York
NY AB 248 Property Tax
Status: Introduced January 4th 2023-25% Progression
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.
Texas
TX HB 740 Property Tax
Status: Introduced November 16th 2022-25% Progression
Update: February 28th, 2023- Referred to Ways & Means
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 November 16th 2022-25% Progression
Update: February 28th, 2023- Referred to Ways & Means
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.
Massachusetts
MA SB 1876 Property Tax
Status: Introduced February 16th 2023-25% Progression
Summary
Legislation to protect homeowners from unfair tax lien practices by cities and towns.
Massachusetts
MA SB 1841 Property Tax
Status: Introduced February 16th 2023-25% Progression
Summary
For legislation to establish a senior property tax deferral pilot program.
Ohio
OH HB 90 Property Tax
Status: Introduced March 7th 2023-25% Progression
Summary
To amend sections 323.152 and 4503.065 of the Revised Code to authorize a total property tax exemption for the homesteads of totally disabled veterans and their surviving spouses.
Ohio
OH HB 726 Property Tax
Status: Introduced October 3rd 2022-25% Progression
Update: Legislation died in Chamber October 3rd, 2022.
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.
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.
