Senate Bill No. 363 allows municipalities to impose assessments on vacant commercial properties that meet specific criteria, including being located in a defined area, zoned for commercial use, and unoccupied for more than 180 days. The bill permits municipalities to set the assessment rate at up to $5 per square foot for each assessment year the property remains vacant. However, properties are exempt from this assessment if the owner is actively renovating, has a pending permit application, has faced legal or regulatory barriers, has been impacted by a natural disaster, or has been deemed uninhabitable by authorities.

The revenue generated from these assessments must be deposited into a dedicated fund established by the municipality, which can only be used for infrastructure improvements, blight remediation, or development promotion within the defined area. The bill also outlines the process for municipalities to adopt the ordinance and specify how property owners can claim exemptions. The effective date for this legislation is October 1, 2026, and it will apply to assessment years commencing on or after that date.