HB 73

This bill draft outlines a system for valuing residential real property for taxation purposes starting January 1, 2028. The property’s base year value is determined based on when it was acquired: properties acquired before 2020 use the fair market value in 2019 value, those acquired between 2020 and 2027 use the fair market value from the year of acquisition, and properties acquired after 2028 use the purchase price unless evidence shows the transaction was not at fair market value. Annual adjustments are made to the base year value to account for statewide property value changes, inflation, new construction or significant additions. The bill specifies that ownership transfers trigger a new base year valuation, with certain transfers excluded, such as those between family members, trusts, or charitable donations. The Department of Revenue is required to adopt rules to implement the valuation process, including procedures for documenting acquisition prices and determining construction costs. The implementation of the bill is contingent on the adoption of a constitutional amendment, which is also sponsored by the Joint Revenue Committee under LSO number 26LSO-0102.