LERETA’s compliance team regularly monitors and tracks statewide property tax legislation that impacts tax services for our customers. This quarter’s update includes details on introduced legislation and updates on new bills LERETA is following. None of these bills are expected to impact LERETA’s processes at this time, but they may be beneficial for customers 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.
The following bills have recently passed this quarter or are newly included in this update:
Recently Passed Bills
The following bills have been passed this quarter:
* Represents new legislation passed in Q2
Arizona — AZ SB 1067 *
Status: Passed on May 29, 2026 — 100% progression
Summary: Amends Arizona law to clarify that the sale of a real property tax lien does not extinguish easements or certain assessment liens. The bill also amends provisions governing judgments that foreclose the right to redeem.
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Colorado — CO HB 1120 *
Status: Passed on June 1, 2026 — 100% progression
Summary: Implements recommendations from the Mobile Home Taxation Task Force, including changes that align the collection of delinquent property taxes with real property tax lien sale and public auction procedures. The bill also extends the redemption period for mobile homeowners and clarifies that an owner under legal disability may qualify for an extended redemption period of up to nine years.
Colorado — CO SB26 144 *
Status: Passed on May 19, 2026 — 100% progression
Summary: Modifies the collection of delinquent property taxes through tax lien sales, including treasurer authority to charge certain fees, the process for selling tax liens and the process for obtaining a treasurer’s deed after a public auction.
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Kentucky — KY HB 600 *
Status: Passed on April 7, 2026 — 100% progression
Summary: Authorizes counties to use a consolidated procedure to collect delinquent tax bills and updates related collection responsibilities, contracts and fees.
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Louisiana — LA HB 514 *
Status: Passed on May 22, 2026 — 100% progression
Summary: Authorizes an additional ad valorem tax exemption for certain property owners aged 65 and older.
Louisiana — LA SB 191 *
Status: Passed on May 11, 2026 — Effective May 11, 2026
Summary: Updates provisions related to the assessment, payment and allocation of ad valorem taxes. The bill also addresses tax lien auction advertisements and procedures governing the sale or donation of adjudicated property.
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Michigan — MI SB 423
Status: Passed on July 21, 2026 — 100% progression
Latest action: Signed by the governor on July 29, 2026
Summary: Modifies sunset provisions for certain delinquent tax payment reduction and foreclosure avoidance programs.
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New Mexico — NM HB 285
Status: Passed on February 25, 2026 — 100% progression
Summary: Modifies property tax provisions for disabled veterans.
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Ohio — OH HB 186
Status: Passed on March 20, 2026 — 100% progression
Summary: Authorizes a reduction in school district property taxes affected by a millage floor to limit increases based on inflation. The bill also modifies residential property tax reductions and the process for certifying property tax abstracts and makes an appropriation.
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South Dakota — SD HB 1193
Status: Passed on March 30, 2026 — 100% progression
Summary: Modifies provisions governing property tax refunds for disabled veterans and surviving spouses under certain property tax relief programs.
South Dakota — SD SB 96 *
Status: Passed on March 30, 2026 — 100% progression
Summary: Authorizes counties to impose an optional gross receipts tax to reduce property taxes on owner-occupied homes.
South Dakota — SD SB 245 *
Status: Passed on March 30, 2026 — 100% progression
Summary: Creates the Homeowner Property Tax Reduction Fund and authorizes the transfer of funds into it.
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Utah — UT SB 238 *
Status: Passed on March 23, 2026 — 100% progression
Summary: Requires residential property owners to apply for a residential exemption when the property was ineligible the previous year, an ownership interest changes or the county has reason to believe the property no longer qualifies.
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Washington — WA SB 6162
Status: Passed on March 23, 2026 — Effective June 11, 2026
Summary: Expands and streamlines the senior citizen property tax relief program, consolidates the state property tax and makes the use of state property tax revenues more transparent.
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Newly Monitored Bills
The following bills are currently being monitored by LERETA’s compliance team.
* Represents newly added legislation or legislation updated since the Q1 report.
Alabama — AL HB 402
Status: Introduced on February 5, 2026 — 25% progression
Summary: Addresses local land bank authorities by shortening the tax sale redemption period, restricting their geographic scope and allowing multi-jurisdictional land banks to be created by agreement. The bill also authorizes the governor to create a land bank during an emergency.
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Colorado — CO HB 1120 *
Status: Passed on June 1, 2026 — 100% progression
Summary: Implements recommendations from the Mobile Home Taxation Task Force, including changes that align the collection of delinquent property taxes with real property tax lien sale and public auction procedures. The bill also extends the redemption period for mobile homeowners and clarifies that an owner under legal disability may qualify for an extended redemption period of up to nine years.
Colorado — CO SB26 144 *
Status: Passed on May 19, 2026 — 100% progression
Summary: Modifies the collection of delinquent property taxes through tax lien sales, including treasurer authority to charge certain fees, the process for selling tax liens and the process for obtaining a treasurer’s deed after a public auction.
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Idaho — ID HB 961
Status: Introduced on March 27, 2026 — 25% progression
Summary: Expands the homestead property tax exemption, increases the sales tax rate and directs sales tax revenue to taxing districts to replace property tax revenue lost through the expanded exemption.
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Illinois — IL HB 4134
Status: Re-referred to the House Rules Committee under Rule 19(a) on March 27, 2026
Summary: Beginning with taxable year 2026, changes the homestead exemption for persons with disabilities to the greater of $2,000 or the amount necessary to limit the property’s aggregate tax liability to a specified base amount.
Illinois — IL SB 1978
Status: No update as of March 2026 — Pending in the Senate Assignments Committee
Summary: Creates the Circuit Breaker Property Tax Relief Act. Eligible residents who experience qualifying property tax bill increases could receive a grant equal to a portion of the increase, up to one-half of the tax bill spike. The bill also creates the Circuit Breaker Property Tax Relief Fund to provide grants to eligible claimants.
Illinois — IL HB 2452
Status: No update as of March 2026 — Pending in the House Rules Committee
Summary: Beginning with taxable year 2026, increases the maximum senior citizens homestead exemption reduction to $8,000 in all counties. The bill also raises the maximum income limitation for the senior citizens assessment freeze homestead exemption from $65,000 to $75,000.
Illinois — IL HB 2753
Status: No update as of March 2026 — Pending in the House Rules Committee
Summary: In qualifying counties using the accelerated method of billing and paying taxes, extends certain delinquency dates when first-installment tax bills are not mailed by January 31. In those cases, the first installment would become delinquent after April 1 and the second installment after September 1.
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Kansas — KS SB 489
Status: Introduced on February 5, 2026 — 25% progression
Summary: Provides a universal homestead exemption from ad valorem property taxation.
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Kentucky — KY HB 600 *
Status: Passed on April 7, 2026 — 100% progression
Summary: Authorizes counties to use a consolidated procedure to collect delinquent tax bills and updates related collection responsibilities, contracts and fees.
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Louisiana — LA SB 191 *
Status: Passed on May 11, 2026 — Effective May 11, 2026
Summary: Updates provisions related to the assessment, payment and allocation of ad valorem taxes. The bill also addresses tax lien auction advertisements and procedures governing the sale or donation of adjudicated property.
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New Jersey — NJ SB 2052
Status: Introduced on January 13, 2026 — 25% progression
Summary: Revises the tax lien foreclosure process to protect equity accrued by property owners whose properties are subject to tax lien foreclosure.
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New York — NY AB 9116
Status: Referred to the Committee on Real Property Taxation in January 2026 — No update as of March 2026
Summary: Addresses the collection of unpaid real property tax liens and water and sewer charges, establishes a homeowner protection fund and prohibits municipalities from transferring tax liens to private entities, trusts or third-party servicers.
New York — NY AB 7494
Status: Referred to the Committee on Real Property Taxation in January 2026 — No update as of March 2026
Summary: Establishes provisions governing real property tax lien transfers to assist homeowners facing foreclosure because of unpaid property taxes.
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North Carolina — NC HB 118
Status: No update as of March 2026 — Pending in the House Rules, Calendar, and Operations Committee
Summary: Increases the portion of a qualifying disabled veteran’s permanent residence excluded from property taxation from $45,000 to $61,000. A qualifying owner who receives this exclusion may not receive other property tax relief.
North Carolina — NC SB 159
Status: No update as of March 2026 — Pending in the Senate Rules and Operations Committee
Summary: Provides additional property tax relief to North Carolina residents aged 65 and older.
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Ohio — OH HJR 7 *
Status: Referred to the House General Government Committee on March 4, 2026
Summary: Proposes a constitutional amendment that would exempt owner-occupied residences from property taxation beginning in 2027 and modify the manner of property taxation.
Ohio — OH HB 92
Status: Engrossed on March 18, 2026 — 50% progression
Summary: Amends Ohio law concerning unpaid municipal utility services.
Ohio — OH HJR 6
Status: No update as of March 2026 — Pending in the House Ways and Means Committee
Summary: Proposes a constitutional amendment limiting property taxes to 1.25% of a property’s true value or 1% for certain owner-occupied residences.
Ohio — OH SB 118
Status: No update as of March 2026 — Pending in the Senate Local Government Committee
Summary: Modifies limitations on the recovery of unpaid water, sewer and waste disposal service charges and the imposition of liens against owners of non-owner-occupied properties.
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West Virginia — WV HB 5162
Status: Engrossed on March 2, 2026 — 50% progression
Summary: Modifies provisions related to the sale of tax liens.
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Newly Failed Bills
The following bills failed this quarter:
Missouri — MO HB 3381
Status: Died in chamber (House) on April 14, 2026
Summary: Allows county commissions to opt out of collecting late fees and penalties on delinquent property taxes.
Missouri — MO HB 2944
Status: Died in chamber (Senate) on May 7, 2026
Summary: Modifies provisions related to the local senior citizen homestead tax credit.
Missouri — MO HRJ 115
Status: Died in chamber (Senate) on April 20, 2026
Summary: Proposes a constitutional amendment authorizing a homestead exemption for disabled veterans.
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Georgia — GA SB 382
Status: Died in chamber (House) on February 3, 2026
Summary: Makes the statewide base-year homestead exemption mandatory for all political subdivisions, removes a related tax bill requirement and makes conforming changes. The bill also removes a condition that must be met before calling a referendum for a special district sales and use tax.
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Action Item Summary
- Review this legislative update to stay informed about recently passed and newly monitored property tax bills.
- Identify any bills that may affect customer portfolios, jurisdictions or internal procedures.
- Pay close attention to legislation involving tax liens, delinquent tax collection, exemptions or property tax relief.
- Use the asterisk to quickly identify newly updated, newly passed or newly monitored legislation.
- Continue monitoring bills that are not yet final, as they may be amended, delayed or fail to advance.
- Consult legal counsel regarding specific legal, compliance or implementation questions.
- Watch for future LERETA updates as relevant legislation progresses.
Frequently Asked Questions
The following questions and answers summarize the recently passed and monitored bills included in this legislative update. They are intended to help customers understand what changed, what LERETA continues to track and whether any immediate operational action is expected.
LERETA monitors statewide property tax legislation that may affect tax services for customers. This update highlights recently passed bills and legislation under monitoring so customers can stay informed about potential changes involving property tax administration, exemptions, lien sales, delinquent tax collection and related procedures.
Based on the information currently available, none of the listed bills are expected to affect LERETA processes at this time. They are included for customer awareness and continued monitoring.
The recently passed bills address tax lien sales, delinquent property tax collection, treasurer's deed procedures, property tax relief for seniors and disabled veterans, residential exemptions, school district property tax reductions and broader property tax reform.
Examples include Arizona SB 1067, which addresses how tax lien sales affect certain easements and assessment liens; Colorado HB 1120 and SB 144, which address mobile home taxation and tax lien sale procedures; Kentucky HB 600, which addresses delinquent tax bill collection; Louisiana HB 514 and SB 191, which address ad valorem tax exemptions and tax lien procedures; and Washington SB 6162, which addresses senior citizen property tax relief and state property tax reform.
"Newly monitored" means the bill has been identified as relevant to property tax operations or customer awareness and is being tracked for future developments. These bills may be in early stages, such as introduced, pending committee review, engrossed or enrolled, and may change before becoming law.
Monitored bills addressing these topics include Alabama HB 402, Colorado SB 144, Kentucky HB 600, Michigan SB 423, New Jersey SB 2052, New York AB 9116, New York AB 7494 and West Virginia HB 5162. These bills involve tax sale redemption periods, delinquent tax payment programs, tax lien foreclosure and procedures for transferring or selling tax liens.
Bills involving exemptions or property tax relief include Idaho HB 961, Illinois HB 4134, Illinois SB 1978, Illinois HB 2452, Illinois HB 3724, Kansas SB 489, Missouri HB 2944, Missouri HRJ 115, North Carolina HB 118, North Carolina SB 159 and Ohio HJR 7. These proposals address homestead exemptions, senior citizen and disabled veteran relief, circuit breaker relief, property tax caps and other reductions for owner-occupied properties.
Recently passed bills have completed the legislative process and may include an effective date or implementation timeline. Monitored bills are being tracked for further developments and may be amended, delayed, fail to advance or eventually become law.
An asterisk identifies legislation that LERETA has marked as newly updated, newly passed or newly added for monitoring during this reporting period.
Customers should review the update for awareness and consider whether any bills may be relevant to their portfolios or internal procedures. Customers should consult their own legal counsel regarding specific legal or compliance questions. LERETA will continue monitoring relevant legislation and provide updates as needed.
