The bill introduces new provisions for ad valorem taxation, specifically targeting the valuation of residential real property. It establishes a rebuttable presumption that the acquisition value of residential properties acquired on or after January 1, 2026, is the fair market value, which will serve as the base year value for property taxation. The bill outlines criteria for determining this base year value based on the acquisition date and includes annual adjustments for inflation and significant property additions. Additionally, it requires the Department of Revenue to create rules for documenting and establishing acquisition value. The bill also clarifies the confidentiality of sworn statements related to property valuation, ensuring they are not public records except under specific conditions.

Moreover, the bill provides new definitions for primary residences, encompassing single-family homes, condominiums, mobile homes, and trailers, while specifying exemptions for certain property transfers, such as those between spouses or parents and children, and transfers to trusts or charitable organizations. It details the process for contesting property assessments, including timelines for appeals and information exchange requirements between the county assessor and the contesting party. Hearings will be conducted according to rules set by the state board of equalization, which must implement necessary regulations by January 1, 2026, while most provisions of the act will take effect immediately upon passage.

Statutes affected:
Engrossed: 34-1-142, 39-11-101, 39-11-102, 39-11-109, 39-13-102, 39-13-103, 39-13-109