Relating to the assessment of certain development property, and including effective date and retroactive applicability provisions

Additionally, the Code section authorizes cities and counties to adopt, amend, or extend such ordinances and provides that property acquired and subdivided for development of housing shall continue to be assessed for taxation and taxed in the manner it was prior to its acquisition for housing until the lot is sold for construction or occupancy of housing.72 provides that a platted lot for which a subdivision plat was recorded is assessed for property tax purposes as acreage or unimproved property for five years or until the lot is actually improved with permanent construction, whichever occurs first. However, for subdivision plats recorded on or after January 1, 2004, but before January 1, 2011, the time limit is eight years.72(1) relating to the five-year limitation by specifying when a subdivision plat is recorded, the individual lots within the subdivision plat shall continue to be classified and assessed for taxation in the manner the property was prior to the recording of the plat for five years or until the lot is actually improved with permanent construction, whichever occurs first.72(2) relating to the eight-year limitation. The bill provides that, unless the owner elects to withdraw the property from the provisions established in the bill, for property acquired for development on or after January 1, 2020, or property owned for development upon which development activities occur on or after January 1, 2020, such property shall continue to be classified and assessed for taxation in the same manner as the property was prior to the acquisition or commencement of development activities, the assessor shall not change the classification and assessment of the property or a lot on the property while development is occurring until the property or lot is improved with a new permanent structure or is sold. The bill allows owners of such property to withdraw the property from this new provision.71(1), as amended in the bill. The bill defines “development” to include reconstruction, zoning changes, clearing lots, depositing fill dirt, and installing streets and public utilities on the lots. The bill specifies nothing shall be construed to require the refund or modification of property taxes that are attributable to assessment years beginning before January 1, 2025, or the adjustment of property assessments for assessment years beginning before January 1, 2025. The bill takes effect upon enactment and applies retroactively to assessment years beginning on or after January 1, 2025.