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.
Recently Passed Bills
The following bills have been passed this year.
* Represents new legislation passed in Q3
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 SB 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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Illinois — IL HB 4537 *
Status: Signed by the governor on July 10, 2026 — 100% progression
Summary: Allows a county, as trustee, to acquire or sell tax-delinquent property, including requesting a tax deed without a judicial tax deed auction. Each parcel acquired this way must then be offered at a public tax deed auction. The bill also creates a surplus equity fund and fee, allows former owners to recover lost surplus equity through an indemnity award and adds notice requirements when a distressed mobile home is at risk of loss for unpaid taxes.
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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; pending voter ratification
Summary: Proposes a constitutional amendment authorizing 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. Changes to tax lien auction advertisement requirements apply to auctions held on or after January 1, 2027.
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Michigan — MI SB 423 *
Status: Signed by the governor on July 27, 2026 — 100% progression
Summary: Removes the sunsets on delinquent tax payment reduction, installment payment plan and tax foreclosure avoidance programs under the General Property Tax Act.
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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: Signed by the governor on December 19, 2025 — 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: Signed by the governor on March 12, 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: Signed by the governor on March 12, 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: Signed by the governor on March 12, 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 Q2 report.
New Jersey — NJ SB 4476 *
Status: Introduced on June 18, 2026 — 25% progression
Summary: Requires the return of surplus equity in all tax lien foreclosures and provides for the appointment of a guardian ad litem for certain persons.
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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North Carolina — NC HB 118
Status: No update as of October 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. The bill also requires the state to reimburse local governments for 50% of the lost revenue.
North Carolina — NC SB 159
Status: No update as of October 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 HB 990 *
Status: Introduced on August 12, 2026 — 25% progression
Summary: Abates property taxes on certain property owned by a township.
Ohio — OH HJR 7
Status: No update as of October 2026. 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. The resolution was written for the November 3, 2026 ballot but has not advanced out of committee.
Ohio — OH HB 92
Status: Passed the House on March 18, 2026 (50% progression); referred to the Senate Local Government Committee on March 25, 2026
Summary: Amends Ohio law concerning unpaid municipal utility services.
Ohio — OH SB 118
Status: Pending in the Senate Local Government Committee; fifth hearing held March 10, 2026
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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Pennsylvania — PA HB 2679 *
Status: Introduced on June 29, 2026 — 25% progression
Summary: Amends the Taxpayer Relief Act to update the filing and payment of claims under the senior citizens property tax and rent rebate assistance program.
Pennsylvania — PA HB 2727 *
Status: Introduced on August 4, 2026 — 25% progression
Summary: Amends Title 53 of the Pennsylvania Consolidated Statutes to provide for a senior property tax freeze.
Pennsylvania — PA HB 2807 *
Status: Introduced on September 28, 2026 — 25% progression
Summary: Proposes a constitutional amendment repealing the provisions relating to uniformity of taxation in Pennsylvania.
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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.
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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 covers recently passed bills and bills newly under monitoring. It helps customers stay informed about changes in property tax administration, exemptions, lien sales, delinquent tax collection and related procedures.
Based on the current update, none of the listed bills are expected to have an immediate impact on LERETA processes. They are included because they may be relevant to customers and are worth reviewing for awareness and future monitoring.
The recently passed bills generally address tax lien sales, delinquent property tax collection and treasurer deed procedures. They also cover senior citizen and disabled veteran property tax relief, residential exemptions and school district property tax reductions. Several address broader property tax reform.
Arizona SB 1067 addresses liens and the effects of tax lien sales. Colorado HB 1120 and SB 144 address mobile home taxation, tax lien sales and treasurer’s deed procedures. Illinois HB 4537 addresses county acquisition and sale of tax-delinquent property and surplus equity. Kentucky HB 600 addresses delinquent tax bill collection. Louisiana HB 514 and SB 191 address ad valorem tax exemptions and tax lien procedures. Michigan SB 423 makes delinquent tax payment and foreclosure-avoidance programs permanent. Washington SB 6162 addresses senior citizen property tax relief and state property tax reform.
“Newly monitored” means the bill is relevant to property tax operations or customer awareness and is being tracked. These bills may still be in early stages, such as introduced, in committee, engrossed or enrolled. They may change before becoming law.
New Jersey SB 4476 and SB 2052 are the newly monitored bills most directly related to tax lien foreclosure. Both address the treatment or protection of a property owner’s surplus equity. SB 4476 would also provide for appointing a guardian ad litem for certain persons.
North Carolina HB 118 and SB 159 address property tax relief for disabled veterans and residents age 65 or older. Ohio HJR 7 proposes exempting owner-occupied residences from property taxes. Ohio HB 990 addresses tax abatement on certain township-owned property. Pennsylvania HB 2679 and HB 2727 concern senior property tax and rent rebate assistance and a senior property tax freeze. Pennsylvania HB 2807 proposes repealing the state constitutional requirement for uniformity of taxation.
No. Passed bills have completed the legislative process and may already have an effective date or implementation timeline. Newly monitored bills are still being tracked and may be amended, delayed, fail to advance or eventually become law.
The asterisk indicates legislation that is newly updated, newly passed or newly monitored in this reporting period. It helps readers quickly identify items that have changed or been added since the prior update.
Customers should review the update for awareness and note any bills that may affect their portfolios or internal procedures. For specific legal or compliance questions, customers should consult their own legal counsel. LERETA will continue monitoring relevant legislation and provide updates as needed.
