Modifying property tax calculations, and including applicability provisions

This bill provides that for property taxes due and payable in fiscal years beginning on or after July 1, 2026, if the amount of property taxes otherwise calculated to be due and payable on a qualified parcel of residential property or agricultural property exceeds 103 percent of the actual amount of property taxes due and payable on the parcel in the immediately preceding fiscal year, such amount due shall be reduced. Similarly, if the amount of property taxes otherwise calculated to be due and payable for such fiscal years on a qualified parcel of commercial property or industrial property exceeds 108 percent of the actual amount of property taxes due and payable on the parcel in the immediately preceding fiscal year, such amount shall be reduced. If, however, improvements or renovations, not amounting to new construction, occur on the property during the base year, as defined in the bill, the threshold amount of property taxes shall be 108 percent plus the percentage of the parcel’s taxable value attributable to the improvements or renovations. Improvements or renovations do not include normal and necessary repairs to an existing building or improvement, not amounting to structural replacements or modifications. _____ levied under Code chapter 468, or taxes under Code chapter 435. “Property taxes” also do not include taxes levied as the result of a property tax levy approved at election or that portion of any property tax levy imposed that is for the payment of principal and interest on bonds or other indebtedness the issuance of which was approved at election, including refunding bonds issued for the repayment of bonds that were approved at election. The limitations established in the bill apply to qualified parcels.10; or (6) the parcel’s classification is different from the base year. If the total amount of property taxes due and payable on the parcel exceeds the applicable threshold for the parcel under the bill, the amount of property taxes due and payable to each taxing authority that certified for levy property taxes on the parcel in excess of the applicable threshold percentage of such amount levied by that taxing authority on the parcel in the immediately preceding fiscal year shall be reduced by the amount by which the parcel’s total amount of property taxes due and payable for all taxing authorities exceeds the applicable threshold for the parcel. _____ the applicable threshold percentage of such amount levied by that taxing authority on the parcel in the immediately preceding fiscal year.5. The bill makes corresponding changes to various other provisions of the Code relating to the calculation and collection of property tax amounts.3.2(3), which would relieve a political subdivision from complying with a state mandate if funding for the cost of the state mandate is not provided or specified. Therefore, political subdivisions are required to comply with any state mandate included in the bill.7.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.