Property assessors would limit annual value increases for certain homes

County directors of equalization would set the assessed value of covered property at the lower of its fair market value or the prior year's value plus five percent. The rule covers owner-occupied single-family homes and nonagricultural property classified under section 10-6-110. The five-percent limit would not apply to value based only on new construction, reconstruction, improvements, or additions during the first assessment after that work. The limit would not apply to property assessed under chapters 10-28 through 10-38. A separate rule would require full fair-market-value assessment every seventh assessment year. The rule would apply for the 2027 assessment year and every assessment year after that, subject to the stated exceptions.

County directors of equalization would assess each covered property at its full fair market value every seventh assessment year. The requirement covers owner-occupied single-family homes and nonagricultural property classified under section 10-6-110. This requirement would override the five-percent limit for that assessment year. Fair market value would be determined under the bill's appraisal rules, including applicable cost, market, and income approaches. The full-value assessment would occur every seventh assessment year beginning with the assessment schedule covered by the bill.

The Department of Revenue would be allowed to make rules for adjusting property values under these assessment provisions. The rules would apply to adjustments under sections 3 through 6 of the bill and related property-assessment administration. The department's rulemaking would follow the state's administrative rule process. The bill specifically adds procedures for adjusting assessed values under the new sections. The text gives no separate effective date for these rules.