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
Arizona
AZ Amendment 312 Property Tax
Arizona Property Tax Refund for Non-Enforcement of Public Nuisance Laws Measure
Status: Passed on November 5, 2024
Update: N/A
Summary
A “yes” vote supported allowing for property owners to apply for a property tax refund if the city or locality in which the property is located does not enforce laws or ordinances regarding illegal camping, loitering, obstructing public thoroughfares, panhandling, public urination or defecation, public consumption of alcoholic beverages, and possession or use of illegal substances.
__________________________________________________________________________________________________________________________________________________
California
CA AB 2353 Property Tax
Status: Passed on September 25, 2024 – 100% progression
Update: Chaptered Secretary of State – Chapter 566, Statuses of 2024
Summary
Section 4985.05 is added to the Revenue and Taxation Code, to read:
(a) Notwithstanding any other law, but except as provided in subdivision (b), a property owner shall not be liable for interest or penalties, nor shall the tax collector take or continue any collection action, with respect to any ad valorem property taxes levied upon a property if the property owner satisfies all of the following requirements annually while receiving the benefit:
(1) The property owner supplies evidence to the tax collector that the property owner has submitted to the county assessor an application for an exemption pursuant to subdivision (g) of Section 214, including, but not limited to, the information required under Section 254.
(2) The property owner supplies evidence to the tax collector that they received a reservation of tax credits from the California Tax Credit Allocation Committee or an award of funds from the Department of Housing and Community Development, including a copy of the reservation letter or notice of award.
(3) Facilities are in the course of construction, as defined in Section 214.2 of the Revenue and Taxation Code.
(b) The treatment of delinquent installments of ad valorem property tax and associated penalties and interest under subdivision (a) shall not apply to any of the following:
(1) The prorated portion of any delinquent installments of ad valorem property taxes that are related to improvements not eligible for an exemption or to residential units not restricted as affordable to lower and very low-income households pursuant to the reservation of tax credits from the California Tax Credit Allocation Committee or the award of funds from the Department of Housing and Community Development.
(2) Any late or delinquent installments of ad valorem property taxes related to property which the assessor, upon completion of its review of the application for exemption pursuant to subdivision (g) of Section 214, has deemed ineligible for exemption.
(3) Any delinquent installment of ad valorem taxes for property that, after four years from the date the claim for the welfare exemption was filed with the assessor, has not been developed in a manner that would make the property eligible for exemption under subdivision (g) of Section 214.
(c) An eligible property owner who is not liable for penalties or interest under this section shall provide verification of eligibility to the tax collector annually. The tax collector shall provide the list of eligible properties to the assessor.
(d) If an assessor deems an application ineligible for exemption, as described in paragraph (2) of subdivision (b), they shall make the notice required in paragraph (2) of subdivision (c) of Section 254.5 and provide a copy of the notification to the tax collector upon receipt of the annual eligibility list.
(e) Any bill, notice of deficiency, or other routine communication sent to the taxpayer from the tax collector shall not constitute a collection action under this section.
(f) This section shall apply to property tax installments that are due and payable from December 10, 2025, to April 10, 2031.
SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
_____________________________________________________________________________________________________________________________________________________
Colorado
CO Property Tax Exemption for Veterans with Individual Unemployability Status Amendment
Status: Passed November 5, 2024
Update: N/A
Summary
A “yes” vote would have supported expanding the property tax exemption for veterans with a disability to include veterans with individual unemployability status as determined by the U.S. Department of Veterans Affairs.
CO SB 108 Property Tax
Status: Introduced January 31, 2023 – 100% Progression
Update: Passed on May 1, 2024
Summary
Property tax relief by a temporary reduction in property taxes due, any local government may approve and certify a temporary property tax credit or temporary mill levy rate reduction as set forth in this section. A district, as definite in section 22-54-103(5), may not reduce a mill levy below the minimum amounts provided in section 22-54-106. The procedures set forth in this section shall be deemed to be a reasonable method for effecting refunds in accordance with section 20 of article X of the state constitution and for providing temporary property tax relief. A temporary reduction in property taxes due for the purpose of property tax relief is subject to annual renewal.
________________________________________________________________________________________________________________________________________________________
Florida
FL Amendment 5 Property Tax
Annual Inflation Adjustment for Homestead Property Tax Exemption Value Amendment
Status: Passed November 5, 2024
Update: N/A
Summary
A “yes” vote supported an annual inflation adjustment to the amount of assessed value that is exempt from property taxation.
______________________________________________________________________________________________________________________________________________________
Georgia
GA Amendment 1 Property Tax
Local Option Homestead Property Tax Exemption Amendment
Status: Passed November 5, 2024
Update: N/A
Summary
A “yes” vote supported providing for a local option homestead property tax exemption and allowing a county, municipality, or school system to opt out of the exemption.
__________________________________________________________________________________________________________________________________________________________
Illinois
IL HB 1377 Property Tax
Status: Passed on August 9, 2024 – 100% Progression
Update: August 9, 2024 – Public Act
Summary
Amends the Property Tax Code. Creates a homestead exemption for eligible property that contains a single family residence that was built no earlier than January 1, 2021 by a municipality and was sold to a private homeowner before January 1, 2035. Provides that the exemption applies for a 10-year period beginning with the tax year following the year in which the property is first sold by the municipality to a private homeowner. Sets forth the amount of the exemption. Effective immediately.
IL HB 3573 Property Tax
Status: Introduced on February 9, 2024 – 25% progression
Update: July 11, 2024 – Added as co-sponsor Sen. Jason Plummer
Summary
Amends the Property Tax Code. Provides that, for taxable year 2024, the maximum income limitation for the Low-Income Senior Citizens Assessment Freeze Homestead Exemption is $75,000. Provides that, for taxable year 2025 and subsequent taxable years, the maximum income limitation shall be adjusted by the percentage increase, if any, in the Consumer Price Index. Effective immediately.
IL HB 5867 Property Tax
Status: Introduced on July 24, 2024 – 25% progression
Update: November 12, 2024 – Referred to Rules Committee
Summary
Amends the Property Tax Code. Creates a homestead exemption for certain property located in Cook County that has been used as a qualified taxpayer’s principal dwelling place for at least 5 continuous years as of January 1 of the taxable year. Provides that the aggregate amount of property taxes levied against that property in any taxable year may not exceed $5,000. Effective immediately.
IL HB 5878 Property Tax
Status: Introduced September 17, 2024-25% Progression
Update: September 17, 2024 – Filed with the Clerk by Rep. Martin McLaughlin
Summary
Amends the Property Tax Code. Provides that certain homestead property that is owned by a person who will be 67 years of age or older during the taxable year is exempt from property taxes levied by a school district. Effective immediately.
IL HB 612 Property Tax
Status: Passed July 1, 2024-100% Progression
Update: Effective Data 7/1/24
Summary
Amends the Property Tax Code. In a Section granting a homestead exemption to veterans with disabilities, provides that property that is used as a qualified residence by a veteran who was a member of the United States Armed Forces during World War II is exempt from taxation regardless of the veteran’s level of disability. Provides that a veteran who qualifies as a result of his or her service in World War II need not reapply for the exemption. Makes changes concerning service-connected disabilities. Makes changes concerning surviving spouses. Effective immediately.
IL HB 3303 Property Tax
Status: Introduced 2/17/23 – 25% Progression
Update: 5/1/24 Added Co-Sponsor Rep. Kimberly Du Buclet
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.
__________________________________________________________________________________________________________________________________________________________
Massachusetts
MA SB 175 Property Tax
Status: Passed on July 30, 2024 – 100% Progression
Action: July 30, 2024 – Assigned PA 0097’24
Summary
Property tax: payment and collection; penalties for failure to file a property tax transfer affidavit; modify. Amends sec. 27b of 1893 PA 206 (MCL 211.27b).
__________________________________________________________________________________________________________________________________________________________
Michigan
MI HB 3735 Property Tax
Status: Passed on October 3, 2024 – 100% Progression
Action: Signed by the Governor, Chapter 221 of the Acts of 2024
Summary
That the town of Truro be authorized to establish a program to reduce property tax liability in exchange for volunteer services for persons with disabilities.
__________________________________________________________________________________________________________________________________________________________
New Jersey
NJ AB 3772 Property Tax
Status: Passed on July 10, 2024 – 100% progression
Update: 2024-07-10 – Approved P.L.2024, c.39.
Summary
Revises process for property tax lien holder to foreclose right to redeem a property tax lien; allows property owner to protect remaining equity.
(d) In an action brought by a municipality, in order to preserve any equity that may exist in the property being foreclosed, the owner, or the owner’s heirs, shall have the right to demand, by written request to the Superior Court before the date that final judgment is entered, that the municipal tax sale certificate be foreclosed with a judicial sale as in the manner of the foreclosure of a mortgage of the property through the office of the county sheriff, or, in the alternative, an Internet auction of the property through the office of the county sheriff. If there is more than one schedule in the in rem foreclosure complaint and a request is made for a judicial sale or an Internet auction, the schedule shall be severed and the final judgment shall provide for a writ of execution to the sheriff of the county where the property is located and the holding of either a judicial sale or an Internet auction, as appropriate.
In the event that the owner or the owner’s heirs do not demand a judicial sale as in the manner of the foreclosure of a mortgage, or an Internet auction through the office of the county sheriff, the municipality may proceed in rem without a judicial sale or an Internet auction, and the owner or his heirs shall have no claim against the municipality for any loss of equity in the property. The amount received at a judicial sale or an Internet auction shall be conclusively presumed to be the fair market value of the property. In the event that no one bids at the judicial sale or the Internet auction above the amount to redeem, or there is no bidding at all, it shall be conclusively presumed that there is no equity in the property.
The sheriff of the county shall deposit with the clerk of the Superior Court any surplus funds derived from the judicial sale or the Internet auction, after all of the costs to the office of the county sheriff for holding the judicial sale or the Internet auction have been withheld by the sheriff from those funds of the sale, after paying the amount of the judgment plus any costs to the municipality.
______________________________________________________________________________________________________________________________________________________
New Mexico
NM Disabled Veteran Property Tax Exemption Amendment
Status: Passed November 5, 2024
Update: N/A
Summary
A “yes” vote supported amending the state constitution to extend the disabled veteran property tax exemption to all disabled veterans (or their widows or widowers) in proportion to their federal disability rating.
NM Increase Veteran Property Tax Exemption Amendment
Status: Passed November 5, 2024
Update: N/A
Summary
A “yes” vote supported amending the state constitution to increase the property tax exemption for veterans from $4,000 to $10,000 and adjust it annually for inflation.
__________________________________________________________________________________________________________________________________________________________
New York
NY SB 434 Property Tax
Status: Introduced on February 27, 2023 – 25% progression
Update: June 3, 2024 – Print number 5213A
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.
__________________________________________________________________________________________________________________________________________________________
North Carolina
NC BB 802 Property Tax
Status: Passed on July 8, 2024 – 100% progression
Action: 2024-07-08 – Ch. SL 2024-44
Summary
This Article shall be known and may be cited as the “Commercial Property Assessed Capital Expenditure (C-PACE) Act.” This Article authorizes the establishment of a statewide C-PACE Program that local governments may voluntarily join to allow willing owners of commercial, industrial, agricultural, nonprofit, and multifamily residential properties with five or more dwelling units to obtain low-cost, long-term financing for qualifying improvements, including energy efficiency, water conservation, renewable energy, and resilience projects, secured by an assessment and lien authorized by this Article. The State finds that a valid public purpose exists because the use of a C-PACE Program creates an additional financing mechanism for property owners to use private funds to finance improvements to their eligible property, thereby driving economic development by creating a diversity of jobs in the resilience and clean energy sectors of the economy. The assessment requires minimal upfront costs and provides a more accessible financial mechanism to fund improvements that will increase the tax value of the affected properties at minimal administrative cost to local governments. C-PACE improvements allow property owners to save on their utility bills because the improvements lead to energy or utility savings and will result in improved indoor air quality or increased resilience, which will increase the ability of communities and local governments to respond to natural disasters and improve public health.
__________________________________________________________________________________________________________________________________________________________
Ohio
OH HB543 Property Tax
Status: Introduced May 15, 2024 – 25% progression
Update: May 21, 2024 – Referred to committee: Ways and Means
Summary
To amend sections 317.22, 319.20, 323.28, 323.74, 5713.18, 5721.19, and 5723.06 and to enact section 319.204 of the Revised Code to require payment of property taxes and assessments when a lot is split or transferred and to generally prohibit tax-delinquent property owners from purchasing tax-foreclosed property.
__________________________________________________________________________________________________________________________________________________________
Texas
TX HB1548 Property Tax
Status: Introduced on December 9, 2024 – 25% Progression
Update: December 9, 2024 – Filed
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.
TX HB249 Property Tax
Status: Introduced on November 12, 2024 – 25% Progression
Update: November 12, 2024 – Filed
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.
_______________________________________________________________________________________________________________-____________________________\
Virginia
VA Amendment Article X Property Tax
Property Tax Relief for Military Spouses
Status: Passed November 5, 2024
Update: N/A
Summary
A “yes” vote amend Article X of Virginia’s Constitution to expand a property tax exemption to all surviving spouses of soldiers who died in the line of duty.
