On February 24, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 1088 – Property Tax – Petition to Review Value of Commercial Real Property.
This bill authorizes a county or municipality to file a petition for review of the assessed value of specified commercial real property when that property sells for at least 20% more than its prior sales price.
This proposal establishes a narrow, objective standard that allows local governments to initiate a review when a qualifying commercial sale demonstrates a substantial increase. By tying the authority to clear market evidence and leaving assessment methodology unchanged, the bill promotes fairness, equity, and stability in the local property tax base without affecting residential properties or tax rates.
Counties rely on accurate and up-to-date commercial assessments to
maintain fairness and stability in the property tax base. When large commercial properties sell for substantially higher amounts, but assessments lag, the burden shifts and inequities arise. HB 1088 helps ensure assessments better reflect current market conditions and promotes consistency in tax administration.
HB 1088’s cross-file, SB 735, was heard on March 3 in the Budget and Taxation Committee. Associate Policy Director Sarah Sample testified in support of this bill.
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