Relating to property taxation by providing a property assessment adjustment and property tax reduction for certain property of persons who meet certain income qualifications, providing a penalty, modifying city and county budget provisions, and including retroactive and other applicability provisions

In addition to the public hearing on the budget, the governing body must hold a public hearing on the resolution. If the sum of the total maximum property tax dollars for the budget year specified in the resolution exceeds 102 percent of the sum of the current fiscal year’s actual property taxes certified for levy, the governing body shall be required to adopt the resolution by a two-thirds majority of the membership of the governing body. Division I of the bill changes the threshold percentage for the two-third majority approval from 102 percent to 101 percent and requires the increase in the budget amount to be approved by the voters at election. The proposition for the increase is not carried or adopted unless the vote in favor of the proposition is equal to at least percent of the total votes cast for and against the proposition at the election. If the proposition is approved by the voters, the county or city, as applicable, shall amend the county or city budget and the department of management shall make all necessary changes to the city’s certified amount of taxes. Division I of the bill applies to city and county budgets for fiscal years beginning on or after July 1, 2021. Division II of the bill provides for an adjustment in the assessed value of a homestead, as defined in the bill, if the owner’s household income consists of percent or more of social security income or pension income. If those qualifications are met, the assessed value of the homestead upon which property taxes are levied in a fiscal year is the same assessed value as for the previous fiscal year. The bill specifies that assessed value is the actual value prior to any rollback being applied. The bill provides that a person who makes a false affidavit for the purpose of obtaining an adjustment, knowingly receives the adjustment without being legally entitled to it, or makes claim for the adjustment in more than one county without being legally entitled to it is guilty of a fraudulent practice and is subject to a criminal penalty. Division II of the bill applies retroactively to January 1, 2020, for assessment years beginning on or after that date and applies to claims filed on or after January 1, 2021, for the adjustments.