Bill > H2694

This bill proposes to create a tax incentive for small property improvements in cities and towns that choose to adopt it. Specifically, for property owners whose real estate is assessed at $500,000 or less, any increase in their property tax liability resulting from improvements made to their property will be partially or fully offset for the first four fiscal years after the improvement is completed. In the first year, the entire increase in tax liability due to the improvement will be deducted. In the second year, half of that increase will be deducted. In the third year, the full increase will be reflected in the tax liability. In the fourth year, half of the increase will be added back. After the fifth year, the property owner's tax liability will reflect the full assessed value of the improved property. Additionally, if a city or town adopts this provision, assessors will be required to clearly state the reasons for any increase in a property's assessed value on tax bills or notices, including improvements made by the owner. The bill also clarifies that only one such credit can be in use at a time and will take effect upon passage.