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
California
Name: CA AB 1517 Property Taxation
Introduced: 5/23/25
Status: 25% in committee; Held under submission
Summary
An act to amend Sections 75.52, 463, 2610.5, 2617, 2618, 2704, 2705, 2922, 4103, 4217, and 4837.5 of the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.
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Illionois
Name: IL HB 2753
Introduced: 2/5/25
Status: 25% progression
Summary
Amends the Property Tax Code. Provides that, in counties with 3,000,000 or more inhabitants in which the accelerated method of billing and paying taxes is in effect, if the tax bill setting out the first installment of taxes is not mailed by January 31, then (i) the first installment of unpaid taxes shall be deemed delinquent and shall bear interest after April 1 (instead of March 1) and (ii) the second installment shall be deemed delinquent and shall bear interest after September 1 (instead of August 1). Effective immediately.
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Michigan
Name: MI SB 423
Introduced: 6/12/25
Status: 25% progression
Summary
Property tax: delinquent taxes; sunsets on certain delinquent tax payment reduction and foreclosure avoidance programs; modify. Amends sec. 78g & 78q of 1893 PA 206 (MCL 211.78g & 211.78q).
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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. ______________________________________________________________________________________________________________________________________________________
Oregon
Name: OR 3545
Introduced: 4/23/25
Status: 50% progression; Public hearing held 5/19/25
Summary
The Act would establish when charges made by HOAs and condo associations start to accrue on property deeded to the county in a tax foreclosure. The Act would create a lien for the amount of the charges on the property. The Act would bar certain costs from inclusion in the amount of the charges secured by the lien. The Act would say who is liable for the charges and the date on which the lien must be satisfied. (Flesch Readability Score: 69.9). [Digest: The Act would exempt property that has been deeded to a county for unpaid taxes from the association fees charged on a home or condo for no more than 6 months. (Flesch Readability Score: 60.7).] [Provides a temporary exemption from assessments imposed by a homeowners association or by an association of condominium unit owners on foreclosed property that has been deeded to a county.] Establishes when homeowners and condominium association assessments accrue on property deeded to the county in the tax foreclosure process. Creates a lien for the amount of the assessments against the property. Excludes certain costs from the amount of assessments secured by the lien. Establishes the liability for the assessments and the date on which the lien must be satisfied. Takes effect on the 91st day following adjournment sine die.
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Recently Passed Bills
Alabama
Name: AL SB 256
Passed: 5/14/25
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 officials to sell a tax lien under certain circumstances.
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Arkansas
Name: AR HB 1400
Passed: 3/12/25
Summary
To Amend The Law Concerning The Redemption Of A Tax-delinquent Parcel; And To Exempt Disabled Veterans From Certain Penalties When Redeeming A Tax-delinquent Parcel.
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Colorado
Name: CO SB 261
Passed: 6/4/25
Summary
Concerning the administration of the property tax deferral program, and, in connection therewith, reversing the 2022 shift of administrative responsibilities for the program from county treasurers to the state treasurer, rescinding eligibility for deferral for persons who are not seniors or persons called into active military service, and making an appropriation.
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Connecticut
Name: CT SB 1187
Passed: 6/17/25
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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Idaho
Name: H0354
Passed: 3/31/25; Effective 1/1/26
Summary
Amends existing law to revise provisions related to the assessment of market value and the homestead exemption.
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Kentucky
Name: KY SB129
Passed: 3/24/25
Summary
Amend KRS 99.727 to define “diverted tax delinquency purchaser” and “third-party purchaser”; require a certificate of delinquency related to property remaining in a tax delinquency diversion program at the expiration of the program’s five year period to be made available for purchase by third-party purchasers; allow diverted tax delinquency purchasers to purchase certificates of delinquency related to property included in a tax delinquency diversion program during the program’s five year period; set requirements for the county attorney related to the sale of the certificates of delinquency; set requirements for a third-party purchaser registering as a diverted tax delinquency purchaser; require the Department of Revenue to promulgate administrative regulations for the purchase and sale of the certificates of delinquency; amend KRS 134.128 to conform.
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Maryland
Name: MD HB9
Passed: 5/13/25
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 HB 790
Passed: 4/22/25
Summary
Requiring the State Tax Sale Ombudsman to include certain information concerning a certain State installment payment program for property taxes on the Ombudsman’s website; requiring the Ombudsman to contract with a vendor to operate an installment payment program for payment of taxes in which any homeowner may enroll; requiring a collector of taxes to include certain information concerning a certain State or local installment payment program for property taxes in a separate insert included with each property tax bill; etc.
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Name: MD HB 590
Passed: 4/22/25
Summary
Authorizing a tax collector to withhold from tax sale certain property occupied by an heir of a deceased owner of the property; requiring that certain owner-occupied property and certain property occupied by an heir of a deceased owner of the property be withheld from tax sale; requiring each county to establish a registry for interested parties or the Tax Sale Ombudsman to designate property to be withheld from tax sale; requiring the State Department of Assessments and Taxation to assist each county in creating and maintaining the registry; etc
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Montana
Name: MT HB 231
Passed: 5/13/25
Summary
Beginning in tax year 2026, the owner of a principal residence may apply to the department to receive the homestead reduced tax rate. The owner of a principal residence who applied for and received the rebate provided for in [sections 9 through 11] for tax year 2024 automatically qualifies for the homestead reduced tax rate unless subsections (2)(c)(i) through (2)(c)(iii) apply to the principal residence for which the rebate was claimed. The owner of a principal residence who did not receive a rebate under [sections 9 through 11], shall apply as provided in this section to receive the homestead reduced tax rate in tax year 2026.
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Nebraska
Name: LB 209
Passed: 2/26/25
Summary
Change provisions relating to homestead exemptions for certain veterans and a property tax exemption for certain facilities.
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New York
Name: NY Tax Law Section 6
Passed: 7/01/25
Summary
Wherever under the provisions of this chapter a warrant is required to be filed in the department of state in order to create a lien on personal property such requirement shall be satisfied if there is filed a record of the fact of the issuance of such warrant, including the name of the person on the basis of whose tax liability the warrant is issued, the last known address of such person, and the amount of such tax liability, including penalties and interest. No fee shall be required to be paid for such filing of such warrant or such record. The term “filed” in such provisions shall mean presentation to the department of state, for filing, of such warrant or such record. * NB Effective until July 1, 2025 * § 6. Filing of electronic warrants and warrant-related records in the department of state.
1.Notwithstanding any provision of this chapter or a related statute to the contrary, all warrants and warrant-related records issued by the department shall be filed electronically by the department in the department of state. No fee shall be required to be paid for such filings. On the date of the electronic filing of a warrant, as confirmed by the department of state pursuant to subdivision five of this section:
(a)the amount of the tax stated in the warrant shall become a lien upon the title to and interest in all real, personal or other property located in New York state, owned by the person or persons named in the warrant. The lien so created shall:
(i)attach to all real property and rights to real property located in New York state that is owned by the person or persons named in the warrant at any time during the period of the lien, including any real property or rights to real property located in New York state that is acquired by such person or persons after the lien arises; and
(ii)apply to all personal or other property and rights to personal or other property located in New York state that is owned by the person or persons named in the warrant at any time during the period of the lien, including any personal or other property or rights to personal or other property located in New York state that is acquired by such person or persons after the lien arises; and
(b)the commissioner shall, in the right of the people of the state of New York, be deemed to have obtained a judgment against the person or persons named in the warrant for the amount of the tax stated in the warrant.
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Oklahoma
Name: OK HB 2147
Passed: 5/29/25
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 HB 1392
Passed: 5/24/25; Effective 1/1/26
Summary
Relating to the postponement of the delinquency date for a payment of ad valorem taxes imposed by a taxing unit if the office of the collector for the taxing unit is closed on the delinquency date
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Name: TX SB 2173
Passed: 5/24/25; Effective 1/1/26
Summary
Relating to the effect of a tax certificate accompanying a transfer of certain property.
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Name: TX SB 4
Passed: 6/16/25
Summary
Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against certain losses in local revenue. Sets the state’s homestead exemption on school district taxes at $140,000 vs current exemption of $100,000.
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Virginia
Name: VA HB 1792
Passed: 3/24/25
Summary
Local taxes; nonjudicial sale of tax delinquent real properties; threshold for nonjudicial sale. Raises the assessment threshold at which a local treasurer or other officer responsible for collecting taxes has general authority to sell real property with more than three years of delinquent taxes from $10,000 or less to $15,000 or less. The bill also raises the assessment range at which such local treasurer or officer may sell parcels of real property with more than three years of delinquent taxes and that meet certain criteria from more than $10,000 but no more than than $25,000 to more than $15,000 but no more than $30,000. The bill also increases the assessment threshold for the nonjudicial sale of real property with more than three years of delinquent taxes when such property is (i) unimproved, (ii) one-half acre or less in size, and (iii) located within a designated urban redevelopment or revitalization zone from properties assessed at more than $25,000 but no more than $40,000 to properties assessed at more than $30,000 but no more than $40,000.
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Name: VA SB 816
Passed: 3/24/25
Summary
Real property tax; exemption for elderly and disabled individuals. Revises various provisions of the local real property tax exemption and deferral program for elderly and disabled individuals. The bill allows a locality to require that an individual (i) pay all delinquent taxes, penalties, and interest assessed by the locality and incurred prior to becoming eligible for an exemption or deferral; (ii) enter into an installment agreement with the locality for the payment of all such delinquent amounts in installments over a period that is reasonable under the circumstances, but that in no event shall exceed 72 months; (iii) submit and obtain the treasurer’s agreement to an offer in compromise with respect to all amounts of delinquent taxes, penalties, and interest; or (iv) carry out a combination thereof. Additionally, the bill provides that notice of the terms and conditions of the exemption and deferral program may be included in any notice of change in assessment and that the treasurer shall post such information on the locality’s website. Finally, the bill allows a locality to provide a prorated exemption or deferral for the portion of the taxable year during which the taxpayer would have qualified for such exemption or deferral but had not yet filed an application.
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Name: VA HB 2362
Passed: 3/21/25
Summary
Sale of real estate for delinquent taxes; procedure; enforcement of liens; orders of publication. Amends certain procedures relating to the sale of real estate to recover delinquent real estate taxes, including the enforcement of liens for taxes assessed upon real estate. The bill clarifies that any party or entity with an interest in the subject real estate, including a lienor, a person with a claim of title, or the beneficiary and trustees under a deed of trust, shall be named as party defendants in a proceeding for the sale of such real estate. The bill also makes the process by which notice by publication is given for a proceeding to enforce a lien for delinquent real estate taxes consistent with other actions where notice by publication is authorized.
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Name: VA HB 1819
Passed: 3/21/25
Summary
C-PACE financing programs. Makes several changes to the Commercial Property Assessed Clean Energy (C-PACE) financing program, including adding a definition of property owner to include a lessee and providing that the lessee may also be eligible for a C-PACE loan by complying with certain conditions, including the consent of the fee simple property owner. The bill also (i) changes from two years to three years from a locality’s issuance of a certificate of occupancy the period within which a local C-PACE ordinance may allow submittal of a loan application and (ii) provides that a locality agrees to execute a locality agreement within 30 days of the adoption of the ordinance that opts them into the statewide C-PACE loan program.
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Name: VA HB 1868
Passed: 3/24/25; Effective 7/1/25
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.
