This 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 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, allowing for a discounted cash flow model for valuation, 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 if the property does not have a dwelling or structure. It also requires valuation authorities to include comparable sales data in the valuation notices sent to property owners. Importantly, the bill prohibits penalties or interest on delinquent taxes if the valuation authority has not timely mailed a valuation notice to the property owner. These changes are set to 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