HB 5140 Summary

• Amends the General Property Tax Act to modify assessment procedures and transfer of ownership definitions for property tax purposes.

• Adds requirement for assessors to disregard any State Tax Commission guideline suggesting transactions should be considered a transfer of ownership when in doubt.

• Requires assessors to provide detailed written notice in 12-point boldfaced type at least 30 days before March board of review meetings when proposing a taxable value increase due to transfer of ownership, explaining the "pop-up" or "uncapping" concept and reasons specific to the property.

• Extends exemptions from transfer of ownership recognition to include transfers of residential real property to certain relatives (parents, siblings, children, grandchildren, adopted children) beginning December 31, 2014, provided the property is not used for commercial purposes.

• Adds exemptions for transfers involving trusts, estates, and distributions to family members, qualified agricultural property with affidavits, and qualified forest property with required forest taxable value affidavits.