summary
Introduced
11/17/2023
11/17/2023
In Committee
11/17/2023
11/17/2023
Crossed Over
Passed
Dead
11/20/2023
11/20/2023
Introduced Session
2023 First Special Session
Bill Summary
Valuation changes. Currently, there are temporary reductions in the valuation for assessment (valuation) of multi-family residential real property and all other residential real property. For the 2023 property tax year, the valuation for these properties is 6.765% of the amount equal to the actual value minus the lesser of $15,000 or the amount that causes the valuation to be $1,000. Section 1 of the bill further reduces the valuation for these properties for the 2023 property tax year by reducing the valuation for these properties to 6.7% of the amount equal to the actual value minus the lesser of $50,000 or the amount that causes the valuation to be $1,000. Reimbursement of local governments. The state is currently required to reimburse local governmental entities for property tax revenue lost as a result of the reductions in valuation enacted in Senate Bill 22-238. The bill maintains this backfill mechanism. Section 2 provides an additional backfill mechanism to reimburse local governmental entities for property tax revenue lost as a result of the additional reductions in valuation enacted in the bill. Section 2 requires the state to reimburse the following local governmental entities a total of $65,000,000 for the total amount of property tax revenue lost by those local governmental entities as a result of the reductions in valuation in the bill in the same manner as provided in Senate Bill 22-238, except that: ! Fire districts are reimbursed entirely; and ! Local governmental entities for which the assessed value of property in the local governmental entity increased by 13.5% or more between the 2022 and 2023 property tax years are not reimbursed at all. Section 2 also modifies both the existing backfill mechanism for Senate Bill 22-238 property tax revenue reductions and the backfill mechanism for the bill's property tax revenue reductions by: ! Specifying that the amount of revenue lost for a property tax year is based on a local governmental entity's mill levy for the 2022 property tax year, excluding specified mills; ! Clarifying how local governmental entities, which are defined in the bill, are treated if their boundaries are in more than one county for purposes of the backfill; and ! Requiring the state treasurer to reduce a backfill as necessary to prevent a local governmental entity from exceeding its constitutional fiscal year spending limit. Transfer to the state public school fund. Section 2 requires the state treasurer to transfer $135 million from the general fund to the state education fund to offset school district property tax revenue reductions. Property tax deadlines and conforming amendments. Sections to 11 delay deadlines as necessary due to the valuation changes for the property tax year and make conforming amendments related to the valuation changes.
AI Summary
This bill proposes the following key provisions:
1. It further reduces the valuation for assessment of multi-family residential real property and all other residential real property for the 2023 property tax year, from 6.765% to 6.7% of the actual value minus the lesser of $50,000 or the amount that causes the valuation to be $1,000.
2. It establishes a mechanism for the state to reimburse local governmental entities a total of $65 million for property tax revenue lost due to the additional reductions in valuation, with some exceptions for entities that experienced significant assessed value increases.
3. It requires the state treasurer to transfer $135 million from the general fund to the state education fund to offset school district property tax revenue reductions.
4. It delays various property tax deadlines and makes related conforming amendments to accommodate the valuation changes.
The bill aims to provide additional property tax relief to residential property owners and offset the resulting revenue losses for local governments and school districts.
Committee Categories
Budget and Finance
Sponsors (4)
Last Action
Senate Second Reading Special Order - Passed with Amendments - Committee, Floor (on 11/18/2023)
Official Document
bill text
bill summary
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bill summary
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bill summary
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