Ad Valorem Taxation: Damaged Properties (Watch)

Ad Valorem Taxation: Damaged Properties (Watch)

SB 1600 (Passidomo) and HB 1375 (Eagle) provide that certain residential properties damaged or destroyed in 2017 by a natural disaster can receive an abatement of certain property taxes. SB 1600 includes all natural disasters, and HB 1375 covers only those properties damaged or destroyed by Hurricane Irma. The bills outline the procedures for property owners to apply for the abatement and for the property appraiser to investigate the claim. If the property appraiser determines the property owner is entitled to the abatement, the property appraiser must issue an official written statement to the tax collector by April 1, 2019. The tax collector must calculate the damage differential and the disaster relief credit and reduce the property taxes initially levied on the residential property by an amount equal to the disaster relief credit. If the value of the credit exceeds the taxes levied in 2019, the remaining value of the credit shall be applied to taxes due in subsequent years until the value of the credit is exhausted. The bills outline the calculation for determining the amount of the disaster relief tax credit. By May 1, 2019, the tax collector must notify the Department of Revenue and the governing board of each affected local government of the total reductions in taxes for all properties that received an abatement. (Hughes)