HB 2319 Summary

• Allows property owners to claim a tax credit against state income tax liability instead of pursuing just compensation claims when land use laws enacted after property purchase reduce the property's fair market value.

• Property owners must waive their right to traditional just compensation under section 12-1134 to claim the tax credit, which equals the amount of diminution in value.

• State treasurer withholds tax credits claimed from distributions to the county, city, town, or political subdivision that enacted the restrictive land use law, then credits the withheld amounts to the state general fund.

• Exempts land use laws protecting public health and safety, prohibiting common law nuisances, required by federal law, limiting sex offender housing or adult businesses, establishing utility facilities, or enacted before December 7, 2006.

• Property owners have three years from the land use law's effective date to claim the credit, and unused credits may be carried forward for up to ten subsequent tax years without exceeding annual tax liability.