HB 146 Summary

• Municipalities may grant partial or total exemptions from taxation on deteriorated property for up to 10 years beginning when substantial rehabilitation, renovation, demolition, removal, or replacement of structures begins.

• Municipalities may permit deferral of tax payments on deteriorated property for up to five years, with deferred amounts becoming liens on the property; deferral immediately ends if property ownership is fully transferred.

• Only one exemption and one deferral may be granted to the same property, and both cannot be in effect simultaneously on the same portion of property.

• Municipalities may exempt the increase in assessed value from subdividing a single parcel into three or more parcels for up to five years, with the option to terminate or continue the exemption when lots are sold or residential/commercial uses are established.

• Deteriorated property includes residential properties in designated areas owned by entities with at least two properties and eight units, or commercial/multi-unit residential properties meeting specific conditions regarding government orders, age, or location in deteriorating areas.