Relating to the authority to modify an ad valorem tax abatement agreement to extend the abatement period if a disaster prevents the property owner from complying with the agreement.
Impact
The legislation will impact state tax laws by providing a mechanism for property owners to maintain financial stability in the aftermath of disasters. It recognizes the significance of flexibility in tax agreements by allowing necessary adjustments during devastating events, thus ensuring that affected property owners are not unduly punished for circumstances beyond their control. The modification of abatement agreements aims to support recovery efforts and promote resilience among communities facing disasters.
Summary
House Bill 1995 seeks to amend existing provisions regarding ad valorem tax abatement agreements by allowing modifications to these agreements under specific circumstances involving disasters. Particularly, if a property has been classified as a disaster area by the governor, and the property owner suffers a casualty loss that prevents compliance with the original agreement, the bill permits an extension of the abatement period for up to an additional ten years. This alteration aims to relieve property owners affected by disasters from penalties associated with failing to meet the original tax agreement terms due to unforeseeable circumstances.
Sentiment
Sentiment regarding HB 1995 appears to be positive among lawmakers, with a unanimous voting outcome of 144 yeas and no nays during the third reading in the House. The bill is seen as a compassionate response to the challenges faced by property owners affected by disasters. However, potential dissenters may raise concerns about the long-term implications of modifying tax agreements, particularly regarding revenue collection for local governments.
Contention
While HB 1995 has garnered substantial support, some contention arises surrounding the potential for abuse of the extended abatement period. Critics may argue that property owners could exploit the provisions to evade tax obligations, raising questions about oversight and compliance enforcement. Nevertheless, advocates emphasize that the bill includes specific conditions that must be met to ensure that it is applied judiciously and only in circumstances warranted by genuine disasters.
Relating to the duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to the authority of an appraisal district to increase the appraised value of real property for ad valorem tax purposes following a specified period after a tax year in which the appraised value of the property is determined in an agreement, protest, or appeal.
Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.