The proposed bill aims to freeze property tax revenues and assessments for a two-year period, specifically for taxes payable in 2026 and 2027. It amends existing laws to stipulate that the total amount of revenue from taxes on real property within a taxing district cannot increase over the previous year's revenue, with certain exceptions. For taxes payable in 2028 and beyond, the increase is limited to the lesser of three percent or an index factor defined in the law. Additionally, the bill allows taxing districts to exceed these limitations under specific circumstances, such as improvements to real property or changes in use.

Furthermore, the bill introduces a new provision that restricts the assessed value of real property for taxes payable in 2026 and 2027 from increasing beyond the assessed value for taxes payable in 2025, unless there are changes in use or classification of the property. It also repeals a previous section that allowed counties or municipalities to increase revenue based on unused index factors from prior years. Overall, the bill seeks to provide financial relief by capping property tax increases and assessments during the specified period.

Statutes affected:
Introduced, 02/05/2025: 10-13-35, 10-13-35.3, 13-16-7, 10-13-35.5