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 additions. It also emphasizes the confidentiality of sworn statements used in property assessments, allowing for certain disclosures for tax assessment purposes while ensuring confidentiality in other contexts.

Additionally, the bill expands the definition of a dwelling to encompass various types of residences, such as single-family homes, condominiums, mobile homes, and trailers, as long as they are used as primary residences. It clarifies exemptions for specific transfers of residential real property, including those between spouses or parents and children, court-ordered transfers, and donations to charitable organizations. The bill outlines the process for contesting property assessments, including appeal timelines and information exchange requirements, mandates recorded hearings by the county board of equalization, and requires written findings by October 1 each year. The state board of equalization and the department of revenue are tasked with implementing necessary rules by January 1, 2026, while the act will take effect immediately, with certain provisions also effective on that date.

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