Valuation Assessment Reduction Residential Property
One of the significant changes introduced by HB 1005 is the reduction of valuation assessments that will now rely on county-specific median property values, rather than a fixed percentage of assessed value. Properties with actual values below 70% of the county median will receive a reduction of 15% of their actual value, while those at or above this threshold will have reductions calculated based on a more complex formula. This is intended to ensure that property taxes better reflect the market conditions unique to each county and offer fairer tax liabilities for homeowners.
House Bill 1005 focuses on modifying the valuation for assessment of residential real property for property tax purposes. The bill proposes that starting from January 1, 2025, the assessment valuation for residential properties, excluding qualified senior primary residences, would be reduced based on a mechanism tied to the median actual value of residential property in each county. This shift aims to provide a more equitable approach to property taxation by adjusting the assessed values according to local market conditions.
However, the bill has its points of contention, particularly concerning its dependence on the enactment of Senate Bill 24-233. This Senate bill must not be undermined by public initiatives that could alter property tax valuations or require voter approval for specific tax revenues. Critics of HB 1005 may argue that tying its effectiveness to another bill creates uncertainty and could hinder timely implementation. This may lead to confusion among homeowners and local governments regarding how property taxes will be assessed and collected in upcoming years, raising concerns about fiscal stability.