HB 24B-1005

Abstract

For property tax years commencing on or after January 1, 2025, the bill modifies the reduction in valuation for assessment of residential real property for the purpose of a levy imposed by a local governmental entity that was enacted in Senate Bill 24-233. Senate Bill 24-233 reduces the valuation for assessment of residential real property by the lesser of 10% of the actual value of the property or $70,000, as adjusted for inflation. The bill replaces that reduction with a reduction in valuation for assessment tied to the median actual value of residential real property in a county as determined by the county assessor as of the most recent assessment cycle. Under the new valuation reduction mechanism, the valuation for assessment is reduced based on the actual value of the property minus an amount equal to: For property with an actual value below 70% of the county median property value, 15% of the actual value of the property; or For property with an actual value equal to or exceeding 70% of the county median property value, the amount equal to the difference between: The amount equal to 15% of 70% of the county median property value; and The amount equal to 9% of the difference between: The actual value of the property; and The amount equal to 70% of the county median property value. The bill takes effect only if Senate Bill 24-233 becomes law. Senate Bill 24-233 becomes law only if neither of the following occur: An initiative that reduces valuations for assessment is approved by the people at the general election held on November 5, 2024; and An initiative that requires voter approval for retaining property tax revenue that exceeds a limit is approved by the people at the general election held on November 5, 2024.(Note: This summary applies to this bill as introduced.)