HB-4645 Summary

• Amends the General Property Tax Act to establish property assessment at 50% of true cash value and limits taxable value increases to 5% annually or inflation rate (whichever is lower) until property ownership transfers.

• Expands exemptions from "transfer of ownership" to include transfers involving limited liability companies (LLCs) where all members are closely related and the other party is closely related to all members, with property restricted to non-commercial residential use.

• Requires annual verification by December 31 that LLC-transferred residential property meets exemption requirements; failure to file results in property adjustment under subsection (3).

• Establishes tiered fines for non-compliance: $500.00 for properties under $200,000 true cash value, $750.00 for $200,000-$500,000, and $1,000.00 for properties exceeding $500,000.

• Adds definition of "commercial purpose" excluding rental of residential property for fewer than 15 days per calendar year.