Bill > HB2868

This bill aims to prevent counties and municipalities from imposing higher property taxes on residential rental properties compared to owner-occupied housing. Specifically, the legislation requires that rental properties be taxed at the same rate as owner-occupied homes and prohibits counties from assessing additional property taxes based on zoning classifications. The bill's purpose is to help keep rental property costs affordable for tenants by preventing what the Legislature views as "double-taxation" of rental properties. The bill includes a provision that allows the relevant commission to create rules for implementing these tax assessment changes, with a requirement to file those rules with the Legislative Rule-Making Review Committee by October 31, 2025. Importantly, the bill clarifies that these provisions do not affect sales and service taxes for businesses, which will continue to be assessed under existing state law. The overall goal is to provide financial relief to both landlords and tenants by standardizing property tax rates across residential property types.