HB 1716

This bill provides that t he general assembly finds that the use of assessment manuals for the valuation of residential properties tends to lead assessors of property to provide speculative and inflated values, rather than the actual value of the property. Instead, this bill provides that t he value of all residential property is the higher of t he most recent price paid for the property , or t he value attributed to the property by a financial institution when the owner refinances the mortgage on the property or otherwise uses the property as collateral for a loan. Such valuation applies to sales or financial institution appraisals that occur after December 31, 2020. However, t he appraised value of residential properties appraised by the assessors of property on or before December 31, 2026, is the appraised value for tax purposes until the residential property is sold or a financial institution attributes a value to the propert y for use as collateral for a loan. HOMESTEAD EXEMPTION Present law provides that a n individual, whether a head of family or not, is entitled to a homestead exemption upon real property which is owned by the individual and used by the individual or the individual's spouse or dependent, as a principal place of residence. The aggregate value of such exemption must generally not exceed $35,000 . However, (i) individuals who jointly own and use real property as their principal place of residence are entitled to such exemptions, the aggregate value of which exempti ons combined must not exceed $52,500, to be divided equally among them in the event the exemptions are claimed in the same proceeding; and (ii) if only one of the joint owners of real property used as their principal place of residence is involved in the proceeding wherein the exemption is claimed, then the individual's homestead exemption must be $35,000. Such exemption is not subject to execution, attachment, or sale under legal proceedings during the life of the individual. Upon the death of an individu al who is head of a family, such exemption inure s to the benefit of the surviving spouse and their minor children for as long as the spouse or the minor children use such property as a principal place of residence. Present law prohibits a homestead exemption from operat ing against (i) public taxes , (ii) debts contracted for the purchase money of such homestead or improvements thereon , or (iii) any debt secured by the homestead when the exemption has been waived by written contract. Relative to (i) in the prior paragraph, this bill authorizes a homestead exemption to operate against public taxes according to either of the following situations:  F or a principal place of residence of a United States citizen for debt related to real property tax, the exemption is the full value of the homestead.  F or a parcel that has been used as a principal place of residence by an owner who is a United States citizen for 10 or more years , (i) such parcel cannot be sold to satisfy a debt ; (ii) t he owner of the parcel seeking to prevent a tax sale of the parcel must provide evidence of the use of the parcel as a principal place of residence for the requisite period and proof of United States citizenship ; (iii) o nce it is determined that the parcel has been used as a principal place of residence for the requisite period, interest does not accrue on the debt ; and (iv) t he debt becomes due and payable upon the transfer of the property to another owner.