Valuation changes. For the 2023 property tax year, section 1 of the act reduces the valuation for assessment (valuation) for multi-family residential real property and all other residential real property from the already temporarily reduced 2023 rate of 6.765% of the amount equal to the actual value minus the lesser of $15,000 or the amount that causes the valuation to be $1,000 to 6.7% of the amount equal to the actual value minus the lesser of $55,000 or the amount that causes the valuation to be $1,000.
- Ambulance districts, fire districts, and health districts are reimbursed entirely;
- Local governmental entities for which the assessed value of property in the local governmental entity increased by 15% or more between the 2022 and 2023 property tax years are not reimbursed at all; and
- The executive director of the department of local affairs and the property tax administrator shall determine, in a manner that is equitable with the amounts that fire districts are reimbursed, the amount that local governmental entities that provide fire protection services are reimbursed.
Section 2 also modifies both backfill mechanisms by:
- Specifying that the amount of revenue lost for a property tax year is based on a local governmental entity's mill levy for the 2022 property tax year, excluding specified mills;
- Clarifying how local governmental entities, which are defined in the act, are treated if their boundaries are in more than one county for purposes of the backfill; and
- Requiring the state treasurer to reduce a backfill to a local government entity as necessary to prevent the local governmental entity from exceeding its constitutional fiscal year spending limit.
APPROVED by Governor November 20, 2023
EFFECTIVE November 20, 2023
(Note: This summary applies to this bill as enacted.)