Some residential owners must apply for tax breaks starting in 2027

Residential property owners must apply to the county before receiving the residential property tax break when one of the listed triggers applies. The triggers are ineligibility in the prior year, a change in ownership interest, or a county finding that there is reason to believe the property no longer qualifies. Homes used as residences for only part of the year and certain other residential properties follow separate application or declaration rules. For an owner's primary residence, applications are due by the later of September 15 or the last day of the 45-day period beginning with the county auditor's notice. State Tax Commission rules may require acceptance of late applications. The residential application provisions take effect January 1, 2027, without retroactive application.

Parties appealing values assigned by the State Tax Commission must provide evidence supporting the value they request. These rules cover appeals over property assessed by the State Tax Commission. Evidence must show that a claim is more likely true than not. A party must show a substantial error in the original assessed value unless it requests that original value. The State Tax Commission carries the burden of proof when it is a party seeking a value above the original assessment. The appeal proof provisions take effect January 1, 2027, without retroactive application.

Local taxing bodies must advertise and hold a hearing before collecting a judgment levy, a tax used to pay their share of a qualifying property tax refund order. These requirements cover local taxing bodies collecting taxes to pay their share of qualifying property tax refund orders. The order must be final, no longer open to appeal, qualify under the law, and be issued no later than 15 days before the certified tax rate is set. Advertisements must give hearing details, the tax amount and duration, and the impact on an average home and business property. Notices to property owners must include hearing details, the amount, and the duration. These provisions took effect May 6, 2026, and apply to taxable years beginning on or after January 1, 2026. Advertisements must run for at least 14 days before the hearing.

Local taxing bodies must allow in-person and online participation in covered property tax increase hearings and hold general business meetings on another date. These rules cover required hearings on property tax increases above the certified rate, the benchmark used to determine whether tax increase procedures apply. Online participants must be able to watch and listen, give oral testimony, and submit written comments before and during the hearing. Budget hearings and specified fee or utility-fund hearings may share the date. Counties must help provide online participation when a taxing body requests assistance. These provisions took effect May 6, 2026, and apply to taxable years beginning on or after January 1, 2026. Online participation instructions must be posted at least 24 hours before the hearing.

Local taxing bodies must send the State Tax Commission proof that they followed the applicable property tax increase rules. The duty covers taxing bodies subject to these tax increase rules. A budget at or below the base year's revenue can qualify for the section's six-year exemption. Taxing bodies must provide any further information the State Tax Commission requires. County auditors may check compliance with the section and must report failures to the commission. The commission cannot approve a rate above the certified benchmark rate if it finds noncompliance within 30 days after the taxing body provides its evidence. These provisions took effect May 6, 2026, and apply to taxable years beginning on or after January 1, 2026.