HB 402

This bill authorizes a property owner to apply for a property tax exemption for those portions of real property that provide tree canopy, as determined by the county planning commission, assessor of property, or county board of equalization, operating individually or in conjunction with each other under this bill ("implementing agency""). The implementing agency must determine the portion of real property that provides tree canopy using reliable, objective means of quantitative assessment, including an urban tree canopy study, high-resol u tion aerial imagery, or field-based visual assessment. Such property tax exemption only applies to the portion of real property that provides tree canopy. If only a portion of real property is located under tree canopy, then such real property is exempt from taxation only to the extent of the value of that portion, and the remaining portion of such property is subject to taxation. LOCAL APPROVAL REQUIRED This bill clarifies that this bill only applies when the county governing body elects, by a 2/3 maj ority vote, to come under its provisions. IMPLEMENTING AGENCY Subject to approval by majority vote of the county governing body, this bill requires the chief administrative officer of the county to select the implementing agency responsible for determin ing tree canopy coverage. The implementing agency must be reviewed annually to determine whether a new implementing agency should be selected and approved. The implementing agency must determine the portion of tree canopy sheltering real properties upon the submission of an application for a tree canopy property tax exemption as prescribed under this bill. This bill requires the implementing agency to formulate application formats and application requirements for the property tax exemption. The impleme nting agency may develop additional criteria for the property tax exemption, subject to the review and approval of the state board of equalization (""board"") and subsequent approval by the county governing body by resolution. The implementing agency must s et the value of the exemption granted under this bill. TYPES OF REAL PROPERTY TO WHICH TAX EXEMPTION IS APPLIED This bill authorizes the county government to determine whether to apply the property tax exemption authorized under this bill to either resi dential properties, commercial properties, or both types of properties. APPLICATION FOR TAX EXEMPTION This bill requires an owner of real property claiming a tree canopy property tax exemption under this bill to file an application for the exemption wit h the state board of equalization on a form prescribed by the board and provide all information required by the board to determine whether the property qualifies for the exemption. An application is deemed filed on the date it is received by the board or, if mailed, on the postmark date. The owner must provide a copy of the application with any supporting materials to the assessor of property of the county in which the property is located. This bill requires the board to make an initial determination gr anting or denying an exemption through its staff designee, who shall send written notice of the initial determination to the applicant and to the assessor of property. Written notice includes notification by electronic means and such notice may be preser v ed in digital or electronic format. This bill provides that a property that is subject to the application requirements is not exempt from being taxed unless the application has been approved in writing by the board. Additionally, the exemption is not transferable or assignable upon its approval, and the applicant must promptly report to the assessor any change in the use or ownership of the property or removal of tree canopy that could affect the property's tax exempt status. APPEAL This bill provid es that an application for an exemption under this bill or another law referring to these procedures is considered an appeal. Either the applicant or the assessor of property may appeal the initial determination to the board and is entitled to a hearing p rior to any final determination of exemption under this section. FILING FEE This bill authorizes the board to, by rule, impose a filing fee for processing applications for the exemption. The implementing agency may also, by rule, impose a filing fee fo r processing applications for the exemptions. In each instance, the filing fee must not exceed $120 and must be proportionate to the value of the property at issue. EFFECTIVE PERIOD FOR TAX EXEMPTION This bill requires all real property granted an exem ption from taxation under this bill to be certified in accordance with the criteria adopted pursuant to this bill. The tax exemption certified in accordance with this bill continues in effect throughout the property value assessment period applied by the county assessor of property, but the exemption must not continue in effect for more than seven years from the date the exemption was first granted unless the implementing agency determines that it is reasonable to continue the exemption an additional seve n years, whereupon the implementing agency must recertify the real property granted the exemption previously pursuant to this bill. At the end of the approved exemption period, this bill requires the assessor of property to reassess the value of the real property, which is then taxed on the basis of its full market value. If, during the period the tax exemption is in effect, the real property is determined by the implementing agency to have tree canopy coverage in an amount less than previously determine d, the exemption is void and of no effect, and the owner is liable for any difference between the tax paid and the tax that would have been due on such property."