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 556 Property Tax
Status: Introduced July 03rd 2023-50% Progression
Summary
Property taxation: transfer of base year value: disaster relief. Existing property tax law provides, pursuant to a requirement of the California Constitution, that the property tax base year value of real property that is substantially damaged or destroyed by a disaster, as declared by the Governor, may be transferred to a comparable property located within the same county that is acquired or newly constructed within 5 years after the disaster as a replacement property.
This bill would extend the 5-year time period described above by 3 years if the property was substantially damaged or destroyed by the 2018 Camp Fire disaster, as proclaimed by the Governor, on or after November 1, 2018, but on or before November 20, 2018. The bill would make these provisions applicable to the determination of base year values for the 2018–19 fiscal year and fiscal years thereafter. The bill would make related legislative findings. By imposing additional duties on local tax officials, the bill would create a state-mandated local program.
California
CA AB 1528 Property Tax
Status: Introduced February 17th 2023-50% Progression
Update: Hearing: Aug 14 @ 10:00 am
Summary
The California Constitution provides that all property is taxable and requires property to be taxed in proportion to its full value. The California Constitution exempts certain property from property taxation, including property owned by a local government, as specified. The California Constitution authorizes the Legislature to exempt from taxation, in whole or in part, property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity.
The Housing Authorities Law establishes a public body corporate and politic, known as a housing authority, within each county and city. Upon enactment of a resolution by the county or city declaring that there is need for a housing authority to function, existing law authorizes the authority to undertake various specified activities relating to affordable housing. Existing law specifies that the property and bonds of a housing authority are exempt from taxation.
This bill would specify that property held by a nonprofit public benefit corporation that is controlled by a housing authority, as described, is exempt from taxation. The bill would require any outstanding ad valorem tax, interest, or penalty that was levied on the property of a housing authority to be canceled, and any tax, interest, or penalty levied that was paid prior to January 1, 2024, to be refunded.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would make findings and declarations related to a gift of public funds.
California
CA AB 1093 Property Tax-Manufactured Homes
Status: Introduced February 15th 2023-50% Progression
Update: Hearing: Aug 14 @ 10:00 am
Summary
The California Constitution provides that all property is taxable and requires property to be taxed in proportion to its full value. The California Constitution exempts certain property from property taxation, including property owned by a local government, as specified. The California Constitution authorizes the Legislature to exempt from taxation, in whole or in part, property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity.
The California Constitution provides that all property is taxable and requires property to be taxed in proportion to its full value. The California Constitution exempts certain property from property taxation, including property owned by a local government, as specified. The California Constitution authorizes the Legislature to exempt from taxation, in whole or in part, property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity.
The Housing Authorities Law establishes a public body corporate and politic, known as a housing authority, within each county and city. Upon enactment of a resolution by the county or city declaring that there is need for a housing authority to function, existing law authorizes the authority to undertake various specified activities relating to affordable housing. Existing law specifies that the property and bonds of a housing authority are exempt from taxation.
This bill would specify that property held by a nonprofit public benefit corporation that is controlled by a housing authority, as described, is exempt from taxation. The bill would require any outstanding ad valorem tax, interest, or penalty that was levied on the property of a housing authority to be canceled, and any tax, interest, or penalty levied that was paid prior to January 1, 2024, to be refunded.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would make findings and declarations related to a gift of public funds.
California
CA AB 445 Property Tax
Status: Introduced February 06th 2023-25% Progression
Summary
Existing law governs the sale to certain entities of a property that has been tax defaulted for 5 years or more, or 3 years or more, as applicable, in an applicable county, including by authorizing the state, county, any revenue district the taxes of which on the property are collected by county officers, or a redevelopment agency created pursuant to the California Community Redevelopment Law, to purchase the property or any part thereof, as prescribed. Existing law also authorizes a nonprofit organization to purchase, with the approval of the board of supervisors of the county in which it is located, a residential or vacant property that has been tax-defaulted for 5 years or more, or 3 years or more if the property is subject to a nuisance abatement lien, as prescribed. Existing law requires the sales price of a property sold pursuant to the provisions described or referenced above to include certain amounts, including all default taxes and assessments and all associated penalties and costs.
This bill would prohibit a property or property interest from being offered for sale under the provisions described above if that property or property interest has not been offered for sale under the provisions described below.
Existing law generally authorizes a county tax collector to sell to any person tax-defaulted property 5 years or more, or 3 years or more, as applicable, after that property has become tax defaulted. Existing law authorizes a party of interest in the property to file with the county a claim for the excess proceeds, in proportion to that person’s interest held with others of equal priority in the property at the time of sale, at any time before the expiration of one year following the recordation of the tax collector’s deed to the purchaser and provides for the distribution of those excess proceeds. Existing law requires, if excess proceeds from the sale of tax-defaulted property exceed $150, the county to provide notice of the right to claim the excess proceeds, as prescribed.
This bill would increase the claims period described above to 2 years if the county does not receive any claims before the expiration of one year following the recordation of the tax collector’s deed to the purchaser and would make conforming changes. The bill would also require the notice described above to include certain information, including the consequences for failing to apply for excess proceeds within the claims period. By requiring a county to administer the claims period for a longer time period and to include additional information in the required notice of the right to claim excess proceeds, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Colorado
CO SB 304 Property Tax
Status: Introduced May 01st 2023-50% Progression
Update: Passed May 24th 2023
Summary
Concerning changes to property tax valuation practices, and, in connection therewith, requiring property tax assessors to consider certain information when valuing real property, requiring certain counties use an alternative protest and appeal procedure in any year of general reassessment of real property that is valued biennially, and clarifying that data that a property tax assessor is required to provide at the request of a taxpayer must include certain information.
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
Update: Failed June 6th, 2023
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
Update: Failed June 6th, 2023
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 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 SB 2 Property Tax
Status: Introduced July 10th 2023
Update: Passed July 22nd 2023
Summary
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
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.
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.
