Proposed Property Tax Relief

NCRLA’s Blueprint

One of the Blueprint’s recommendations was a Property Tax Payment Revaluation:

“Legislation to allow commercial properties that have experienced diminished real estate value due to COVID-19 to request a property tax revaluation by appropriate local authorities ahead of the normal revaluation schedule.”

House Bill 119

Representative John Bradford last week filed House Bill 119: Property Tax Relief for COVID Affected Businesses. The bill has bipartisan support and addresses some of the concerns outlined in NCRLA Blueprint.

HB119 would allow deferment on 2020 property tax collection from March to December 2020. Property owners who had a reduction of 25% or more in gross revenues and/or retail businesses that had a reduction of 25% or more in sales tax collections. These qualifying property owners can apply for a payment plan for taxes owed on the effected property, by the May 1st application deadline.

The bill also mandates the County Property Assessors to recognize the effect COVID-19 had on a property’s value because of the change in the legally permitted use of the property. Acknowledging that the property values changed when normal business operations were effected as a result of the executive orders and local regulations in response to the pandemic.

It also gives authorization to the County Assessor to modify the appraised value of real property, recognizing the change in property value - proportionate to the part of the year when restrictive governmental regulations were in effect. This would allow the Assessor to also make the appropriate modifications in the value of the property - for qualifying property owners.

Summary:
If a property owner has had a 25% loss in income, they would be allowed to pay a lower property tax bill for their 2020 property tax and create a payment plan in 2021.

B Holladay