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.
Newly Monitored Bills
Alabama
Name: AL SB 256 Property Tax – Mobile County
Introduced: 3/19/25
Status: 25% progression
Summary
Amend definition of municipal tax liens to authorize the inclusion of certain weed liens on a tax bill under certain circumstances; deem municipality as prevailing party in certain bid auctions resulting in a tie; authorize municipality to enter property to make repairs under certain circumstances; and authorize tax collecting official to sell a tax lien under certain circumstances.
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California
Name: CA AB 1517 Property Taxation
Introduced: 3/13/25
Status: 25% progression
Summary
Existing property tax law provides for the payment of taxes on the secured roll in 2 installments, which are due and payable on November 1 and February 1, respectively. Under existing property tax law, unpaid property taxes become delinquent, and subject to a delinquent penalty of 10%, as provided. Existing property tax law imposes various additional penalties, costs, and interest upon taxpayers that pay their property taxes after specified delinquency dates. Existing property tax law requires a penalty to be canceled when the reason for the delinquency is that the property tax bill was sent to the wrong address, and authorizes county officials to cancel property tax penalties in other circumstances. Existing property tax law provides for a supplemental property tax roll for property tax assessments made after the property tax lien date.
Existing property tax law requires the tax collector to mail or electronically transmit a county tax bill or a copy thereof for every property on the secured roll. Under existing property tax law, a failure to receive a tax bill does not relieve the lien of taxes or prevent the imposition of penalties.
This bill would suspend the above-described penalties, costs, and interest, as applicable, and would prohibit their collection until April 10, 2026, for property located in a certain area in either the County of Los Angeles or the County of Ventura, unless either the taxes on the property were delinquent as of January 6, 2025, or the taxes on the property are paid through an impound account.
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Connecticut
Name: CT SB 1187
Introduced: 1/29/25
Status: 25% progression
Summary
To prohibit foreclosure, assignment and other enforcement actions for unpaid sewer assessments and other fees and charges in the case of owner-occupied real property for which the principal of such unpaid assessments, fees and charges is less than three thousand dollars unless three years have elapsed from the date any lien was filed and such lien remains unpaid.
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Indiana
Name: IN SB 6 Property Tax Deferral Program FL
Introduced: 2/4/25
Status: 25% progression
Summary
Property tax deferral program. Authorizes a county fiscal body to adopt an ordinance to establish a property tax payment deferral program (program). Provides that a qualified individual participating in the program may defer the payment of part of the property taxes that would otherwise be due on a homestead. Defines “qualified individual”. Provides that property taxes deferred under the program are due after the occurrence of a deferral termination event. Provides that the maximum amount of taxes that may be deferred cumulatively year over year may not exceed $10,000.
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Maryland
Name: MD SB 472 Property Tax G
Introduced: Engrossed on 3/13/25
Status: 50% progression
Summary
Authorizing the Mayor and City Council of Baltimore City or the governing body of a county to establish, by law, a subclass of real property consisting of certain commercial and industrial property and to set a special property tax rate for certain commercial and industrial property for the purpose of financing certain transportation improvements or the approved budget of the county board of education; applying the Act to all taxable years beginning after June 30, 2025; etc.
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Name: MD HB 23 Property Tax
Introduced: 3/12/25
Status: 50% progression
Summary
Authorizing the Mayor and City Council of Baltimore City or the governing body of a county to establish, by law, certain subclasses of real property located within 1 mile of a rail station and to set a special property tax rate for each subclass of the property.
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Name: MD HB 9 Property Tax
Introduced: 3/11/25
Status: 50% progression
Summary
Requiring that certain owner-occupied property be withheld from tax sale; authorizing a county or a municipal corporation to withhold from tax sale certain property designated for redevelopment purposes; establishing a maximum rate of redemption of 10% for owner occupied property sold at tax sale; prohibiting taxes, interest, and penalties accruing after the date of a tax sale from being included in a certain payment; altering the contents of certain statements required to be sent to an owner of property subject to tax sale; etc.
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Name: MD SB 192 Property Tax
Introduced: 1/8/25
Status: 25% progression
Summary
Requiring that certain owner-occupied property be withheld from tax sale; requiring a county or municipal corporation to withhold from tax sale certain property when the taxes consist only of a lien for unpaid water and sewer service; authorizing a county or a municipal corporation to withhold from tax sale certain property designated for redevelopment purposes; altering the contents of certain statements required to be sent to an owner of property subject to tax sale; etc.
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Montana
Name: MT HB 836 Property Tax
Introduced: 3/18/25
Status: 25% progression
Summary
Property tax deferral loan program. Providing that the loan is for property taxes that exceed 2022 property taxes; Providing that the program is available to certain senior citizens and active duty military; Providing eligibility requirements; Providing repayment provisions; Providing definitions; Providing rulemaking authority
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Missouri
Name: MO SB 87 Property Tax
Introduced: 1/8/25
Status: 25% progression
Summary
Reduces the assessment percentage for real residential property.
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New York
Name: NY AB 7494
Introduced: 3/28/25
Status: 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.
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North Carolina
Name: NC S159 Property Tax
Introduced: 2/26/25
Status: 25% progression
Summary
An act to provide additional property tax relief to North Carolina residents who are 65 or older
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Ohio
Name: OH SB118 Property Tax
Introduced: 2/25/25
Status: 25% progression
Summary
Code amendment regarding limitations on recovery and lien imposition by municipalities against property owners of non-owner-occupied properties for unpaid water, sewer, and disposal service rates and charges. ______________________________________________________________________________________________________________________________________________________
Oklahoma
Name: OK HB2147
Introduced: 3/26/25
Status: 50% progression
Summary
Property Tax Cities and towns; Municipal Code Lien Enforcement Act of 2025; lien; violations; housing; building code; foreclosure; real property
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Texas
Name: TX HB1548
Introduced: 12/9/24
Status: 25% progression
Summary
Relating to an exemption from ad valorem taxation by certain taxing units of a portion of the appraised value of the residence homestead of the parent or guardian of a person who is disabled and who resides with the parent or guardian
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Name: TX HB249
Introduced: 11/12/24
Status: 25% progression
Summary
Relating to installment payments of ad valorem taxes imposed on residence homesteads in certain counties. (3) an individual who is qualified for an exemption under Section 11.13 for property located in a county with a population of more than 1.5 million in which more than 70 percent of the population lives in a single municipality
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Recently Passed Bills
Virginia
Name: VA HB1868
Passed: 3/24/25
Summary
Real property tax exemption: surviving spouses of members of the armed forces who died in the line of duty; clarification for deaths resulting from suicide. Clarifies that the real property tax exemption currently available to the surviving spouse of any member of the armed forces of the United States who died in the line of duty with a Line of Duty determination from the U.S. Department of Defense includes the death of any such member that was the result of suicide.
