HB 18-1283

House Bill 18-1283, which has been signed into law, helps homeowners whose houses are destroyed, demolished, or moved by allowing their property to remain classified as residential for tax purposes for up to two years after the event. This classification can lower property taxes during this period if the homeowner intends to rebuild and shows evidence like building permits or construction plans. The bill ensures that the land reverts to its usual tax classification if no new residential improvement is made within two years, unless there was an error in the original classification or a change of use occurs. This affects homeowners who have suffered property damage and are planning to reconstruct their homes.

Official Summary

When residential improvements are destroyed, demolished, or relocated on or after January 1, 2018, that, were it not for their destruction, demolition, or relocation, would have qualified the land upon which the improvements were located as residential land for the following property tax year, the bill requires the residential land classification to remain in place for the year in which the improvements were destroyed, demolished, or relocated and one subsequent property tax year if the assessor determines that evidence is present that the owner intends to rebuild or locate a residential improvement on the land. For purposes of making this determination, the assessor may consider, but is not limited to considering, a building permit or other land development permit for the land, construction plans for such residential improvement, or efforts by the owner to obtain financing for a residential improvement. The residential land classification of the land must change according to current use if: A new residential improvement or part of a new residential improvement is not constructed or placed on the land in accordance with applicable land use regulations prior to the January 1 of the property tax year immediately following the 2-year period described in the bill; The assessor determines that the classification of the land at the time of the destruction, demolition, or relocation was erroneous; or A change of use has occurred. For purposes of the bill, a change of use does not include the temporary loss of the residential use due to the destruction, demolition, or relocation of the residential improvement.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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