SB 566 — Property Taxes: Revise Notice of Assessment

The substitute to Senate Bill 566, LC 44 3502S, revises the annual notice of assessment. The bill is in sections as follows:

Section 1: Allows the tax commissioner to accept the digest, in the event of a newspaper publication error, with sufficient documentation submitted by the county to prove that the error was not on the part of the county or other levying authority. 

Section 2: Specifies what is included in each ad valorem property tax bill form: the total amount of taxes levied, the amount that the property taxes were reduced through exemptions and credits, and the net amount of taxes due for the current year. The bill strikes the opt out notice requirement from HB 581. 

Section 3: Clarifies how substantial property changes including improvements, additions, or removal of real property are to be addressed in calculating the base year assessed value.The bill also states that if an applicant becomes ineligible for the homestead exemption but then becomes eligible and applies for the homestead exemption again, the base year value for the homestead property would be recalculated.

Section 4:Relates to homestead exemption applications during the calendar year after the property becomes the primary residence of the applicant including: the final date to file an appeal of the notice of current reassessment. Failure to meet the applicable deadline will result in a waiver of the homestead exemption. Anyone who has been granted the homestead exemption must notify the tax commissioner if they become ineligible for the exemption.

Section 5: The bill adds penalties after January 1, 2026 if an individual fails to report his or her ineligibility for the homestead exemption. Penalties include: property is assessed at 50% of the amount that taxes were to be reduced through exemptions and credits.

Section 6:  The bill requires local tax officials to submit annual lists of taxpayers that have been granted or denied a homestead exemption, to the Department of Revenue (DOR). DOR must also maintain a database of homestead exemption information that local tax officials can access to review.

Section 7: Additions on what is included in the annual notice of current assessment: the previous tax year property value which is the fair market value used for the previous assessment; the current tax year property value which is the fair market value used for the current assessment; a brief description of any change in the taxable assessed value from the previous assessment; a list of each exemption or credit allowed for the property; the estimated savings from exemptions or credits allowed for the property; a brief description of the methods that a taxpayer can appeal the current assessment; and a statement of the taxpayer’s right to appeal. The annual notice of current assessment must be mailed no later than July 1. 

Section 8: This repeals Code Section 48-5-306.2 requiring each levying authority to annually calculate it’s estimated roll-back rate and certify it to the county board of tax assessors and county tax commissioner. 

Section 10: The bill would be applicable to tax years starting on January 1, 2026 and later.