The bill amends the Property Tax Code to redefine "residential property" and establish new methods for property valuation for tax purposes. The definition of "residential property" is updated to specify that it includes only properties not zoned primarily for commercial, industrial, or agricultural uses, and excludes those used for temporary or transient habitation, such as hotels and motels. Additionally, the bill introduces valuation methods for multiple like-kind properties owned by a single taxpayer within a county, requiring the use of a discounted cash flow model, and mandates that separate contiguous tracts owned by a single taxpayer be valued as a single tract.

Furthermore, the bill exempts certain residential property transfers from the requirement to file an affidavit with the county assessor, specifically those that do not have a dwelling or structure. It also requires valuation authorities to include comparable sales data in the notices sent to property owners regarding their property's net taxable value. Importantly, the bill prohibits penalties or interest for delinquent taxes if the valuation authority has not timely mailed a valuation notice to the property owner, ensuring that property owners are adequately informed before any penalties are applied. The provisions of this act will take effect for property tax years beginning on or after January 1, 2026.

Statutes affected:
introduced version: 7-35-2, 7-36-15, 7-38-12.1, 7-38-20