Bill > SB337

This bill provides a temporary property tax exemption for residential subdivision development projects, allowing developers to receive a 5-year tax break under specific conditions. To qualify, developers must submit an application to the state department and prepay property taxes equal to five times the amount due in the most recent tax year, along with a 5% fee. The exemption applies to all real property in the subdivision, including new residential construction, and remains valid for up to 5 years regardless of ownership changes. The exemption automatically expires on a specific lot once a habitable residential structure is built, and it terminates for the entire subdivision when 95% of the lots have completed residential structures. This approach aims to incentivize residential development by reducing initial tax burdens and providing financial flexibility for developers during the subdivision development process. The bill will apply to property tax years beginning after December 31, 2025, and grants the state department authority to create implementation rules. Additionally, the bill makes a technical amendment to existing tax calculation procedures to accommodate this new exemption process.