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HB 1038 - Property Taxes - Improvements to Commercial Property Assessment
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Tracking Level: Support
Sponsor: David Dreyer
Last Action: 2/28/2020 - House Second Readers
House Committee: Ways and Means
Assigned To:
Larry RamseyNext Bill
Property TaxNext Bill

Staff Analysis of the Legislation

This bill would make multiple changes to the assessment/valuation of commercial properties, which studies show are significantly undervalued for tax purposes:

  • Tax assessors would be authorized to reassess property that is otherwise subject to the 3-year valuation "freeze" following a tax appeal, if changed market conditions show that the property's value has increased at least 15% over the frozen value, as shown by an income-approach valuation. 
  • For tax appeals on commercially used properties valued above $5 million, the taxpayer would be required to provide a list of property-specific data, including financial statements, real estate appraisals, and an itemized list of personal property and fixtures located on the property.
  • The bill would eliminate the current requirement that property owners be billed at only 85% of the assessed value if an appeal of that assessment is still pending at the time of billing.
  • In cases where the final value determined on appeal is 85% or less than the board of equalization value, the taxpayer's entitlement to the county paying attorney's fees would be limited to 50% of the actual tax savings by the taxpayer, with a maximum award of $30,000. Additionally, no attorney's fees would be awardable if the taxpayer has failed to provide the documentation described above.
  • No properties that are subject to the 3-year valuation freeze could be used as a comparable property in determining another property value. 

Bill Summary from the State Site - Click for the State Summary Page / Click for Current Full Text

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