Summary:

 Senate Bill 192 (SB 192) modifies property tax provisions, including adjustments to veteran exemptions in accordance with constitutional amendments approved in the November 5, 2024, general election. The bill also clarifies property valuation limits, establishes penalties for failure to report property transfers, adjusts administrative procedures for property valuation protests, and revises county property valuation fund revenue streams. The bill includes an emergency clause, making it effective immediately upon passage. 

Legislation Overview:

 Senate Bill 192 (SB 192) makes multiple amendments to the Property Tax Code. It adjusts property tax exemptions for veterans, increasing the exemption amount and establishing an inflation-adjusted formula beginning in tax year 2026. The exemption for disabled veterans or their surviving spouses may now be transferred within the same tax year by submitting a written request to the county assessor.

The bill also revises property valuation limits, specifying that valuation increases on residential property do not apply to certain physical improvements, including the reproduction of structures destroyed in a declared state disaster. It clarifies administrative penalties for failing to report property transfers and removes the requirement for county assessors to mail residential classification forms to property owners. Notices of valuation sent to property owners are updated to include clearer calculation estimates and procedural information for tax protests.

SB 192 increases compensation for county valuation protest board members to $400 per day, with annual inflation adjustments starting in 2026. It also modifies the revenue sources for the county property valuation fund, ensuring administrative charges deducted by county treasurers contribute to fund stability.

Implications
SB 192 will have financial implications for both taxpayers and local governments. The increased veteran exemption and its inflation adjustment will reduce taxable property values, lowering property tax revenues for local governments. However, increased penalties for reporting failures and administrative efficiencies may offset some revenue losses. The pay increase for valuation protest board members and adjustments to valuation procedures will require additional county resources for implementation. The emergency clause ensures immediate enactment, allowing for the revised exemption provisions to take effect in the current tax year. 

Current Law:

 Current law provides a fixed $4,000 veteran property tax exemption without inflation adjustments. Disabled veteran exemptions require application before the tax year begins, and transfers are not allowed within the same tax year. Property valuation increases apply to all physical improvements, and county treasurers administer deductions without specific allocations to the county property valuation fund. SB 192 modifies these provisions to enhance taxpayer benefits and improve administrative processes.