This bill proposes several updates to the current statutes regarding property valuation, specifically in relation to splits, subdivisions, and consolidations. Under the current law, property that has been split, subdivided, or consolidated from January 1 through September 30 of the valuation year is subject to specific valuation rules, which are now being amended. The bill clarifies that a county assessor must only reestablish a property's limited property value (LPV) if the split, subdivision, or consolidation results in a new, independently usable and marketable economic or functional unit. Additionally, it specifies that such actions must be initiated by the property owner, rather than a governmental entity, to trigger a Rule B valuation.

The bill also introduces definitions for key terms such as "economic unit," "functional unit," "independently marketable," and "independently usable," which will help delineate the criteria for when a reestablishment of LPV is necessary. It removes outdated provisions that previously governed the valuation of properties split or consolidated after September 30 and clarifies the conditions under which the LPV is determined for both owner-initiated and governmental actions. Overall, these changes aim to streamline the property valuation process and ensure that only significant changes to property use or marketability necessitate a reassessment of value.

Statutes affected:
Introduced Version: 42-13302