SB 99 - This act establishes the Predictable Property Tax Act which, beginning August 28, 2009, freezes the assessed valuation of real property at the 2006 assessed value or at the acquisition price of property purchased after the effective date of the act and sets the tax rate at one percent. The assessment can be adjusted for cost-of-living increases up to two percent annually. Real property tax revenues are limited to the 2006 real property tax revenues for each county, excluding new construction, improvements, and cost-of-living increases. If the market value of a home declines, the assessed valuation must decrease. The limitations will not apply to any voter-approved tax increase, bond indebtedness, or special assessment. Any taxpayer age fifty-five or older can transfer the assessed value of his or her current home to any replacement home of equal or lessor value. The act allows the transfer of property up to $1 million in assessed value to children or grandchildren without reassessment.
The provisions of this act will only become effective upon voter approval of a constitutional amendment limiting increases in assessed value until a transfer of ownership occurs.
This act is similar to the introduced version of house bill 1471 (2008).