The proposed bill, Substitute House Bill No. 7001, establishes a specific methodology for assessors to determine the fair market value of retail sales facilities for property tax purposes, effective October 1, 2025. Under this bill, assessors are required to utilize three approaches when valuing these facilities: the cost less depreciation approach, the income approach, and the comparable sales approach. The bill defines "retail sales facility" as a structure that serves customers physically present for the purpose of purchasing goods or renting tangible personal property. Additionally, when applying the comparable sales approach, assessors must consider properties that are reasonably similar in terms of age, condition, use, construction type, location, design, physical features, and economic characteristics.

This legislation modifies existing law, which previously allowed assessors to use any acceptable mass appraisal methods without the requirement to apply all three approaches specifically for retail sales facilities. The bill's implementation may lead to changes in the grand list of municipalities, potentially resulting in increases or decreases in property values starting in fiscal year 2027, depending on how retail properties would have been valued under the previous system. The bill aims to create a more standardized and equitable assessment process for retail sales facilities, ensuring that property taxes reflect their true market value.