The bill amends the Property Tax Code to impose limitations on the valuation increases of both residential and nonresidential properties, particularly concerning physical improvements. For residential properties, the valuation increase is capped at 103% of the previous year's value or 106.1% of the value from two years prior, with exceptions for new properties and specific improvements like solar energy installations and those resulting from state disasters. Nonresidential properties will see a temporary valuation limit of 112% of the previous year's value for tax years 2025 through 2037, with exceptions for first-time valuations and changes in property use or zoning. Additionally, the bill revises property tax exemptions for veterans, increasing the exemption amount for tax year 2025 to $10,000 and allowing for the transfer of exemptions for disabled veterans and their surviving spouses.

The legislation also enhances transparency in property valuation notices by requiring specific information to be included, such as the property owner's name and valuation for taxation. It establishes a "county valuation protests board" in each county, with increased compensation for board members and specific qualifications. The bill introduces penalties for non-compliance with reporting requirements related to property transfers and exemptions, including potential misdemeanor charges for false statements. Overall, the amendments aim to provide stability in property tax valuations, improve benefits for veterans, and streamline processes for property tax regulations, with provisions taking effect for tax years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-36-21.2, 7-37-5, 7-37-5.1, 7-38-12.1, 7-38-12.2, 7-38-17, 7-38-17.1, 7-38-20, 7-38-25