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, will be considered 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 improvements. Additionally, it mandates the Department of Revenue to create rules for documenting and establishing acquisition value, while also clarifying the confidentiality of sworn statements related to property valuation.

Moreover, the bill revises definitions and procedures concerning property taxation, emphasizing uniformity in property valuation across different classes. It introduces new definitions for primary residences, including single-family homes, condominiums, mobile homes, and trailers, while specifying exemptions for certain transfers, such as those between spouses or parents and children. The bill also details the process for contesting property assessments, requiring individuals to file statements with the county assessor within thirty days of receiving their assessment schedule and mandating the exchange of information prior to hearings. The state board of equalization is tasked with adopting rules for these appeals, and the act is set to take effect immediately, with specific provisions commencing on January 1, 2026.

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