SB1794 Summary

• Increases the statute of limitations for local government tax assessments from 4 to 5 years, with an audit or review tolling the period for up to 1 additional year, and extends to 6 years if less than 75% of taxes were paid during the 4-year period.

• Allows municipalities to conduct audits of public utility tax collections and requires utilities to provide premises-specific information (addresses, usage data, tax amounts) within 45 days of written email request, occurring no more than once every 2 years.

• Requires public utilities and municipalities to collaboratively develop and file master lists of all taxable premises by December 31, 2024 (extendable to December 31, 2026), with semi-annual updates to track changes in tax status and jurisdiction.

• Limits public utility liability for tax collection errors to those occurring 60 days after the first master list is filed, except for premises on the master list, annexed areas with proper notice, or utility non-compliance with established processes.

• Authorizes the Department of Revenue to assess penalties up to $50,000 per audit (or $10,000 for utilities with under 100,000 customers) for utilities that materially fail to provide required information timely, with penalties deposited to the Supplemental Low-Income Energy Assistance Fund and not recoverable through utility rates.