HB 23B-1005 Summary

• Reduces property tax assessment valuations for the 2023 tax year: lodging and non-residential property to 25% (from 27.9%), and residential property to 6.5% (from 7.15%), with exemptions up to $60,000 for commercial and $80,000 for residential property.

• Reduces state income tax rates from 4.40% to 4% for both individual and corporate income for tax year 2023 only, exempting these reductions from tax expenditure performance statement requirements.

• Modifies property tax revenue backfill mechanisms to use unrestricted general fund money and requires state treasurer to issue warrants to counties by April 15, 2024 (or February 29, 2024 if counties report by February 15, 2024).

• Creates a temporary property tax task force with 22 members from legislature, local government, and business organizations to develop permanent and sustainable tax structure recommendations by December 31, 2023.

• Postpones multiple property tax deadlines for the 2023 tax year (including certification and levy deadlines to January 2024) and modifies local government budget law provisions for 2024 to account for assessed valuation changes.