Bill > S0437

This bill introduces a new Non-Owner Occupied Property Tax Act that imposes a graduated tax on residential properties not primarily occupied by their owners and assessed at $800,000 or higher. The tax rates vary based on property value: properties valued between $800,000 and $1 million will be taxed at 0.4%, properties between $1 million and $2 million will be taxed at 0.5%, and properties over $2 million will be taxed at 0.6%. The legislation aims to address several policy concerns, including protecting municipal tax bases, encouraging property maintenance, and ensuring that non-owner occupied properties contribute fairly to essential local services. The tax will be payable in four equal installments throughout the year, beginning July 1, 2025, and property owners must maintain detailed records to support their tax filing. The bill provides mechanisms for exemptions, appeals, and administrative procedures, and includes provisions for penalties, interest on late payments, and potential set-offs against state government payments. Importantly, the tax is designed to be additional to existing property taxes and does not supersede other existing tax exemptions. The act will take effect on January 1, 2026, giving property owners and local governments time to prepare for its implementation.

Budget and Finance

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