Introduced
by
To establish that the Proposal A property tax “pop-up” will not go effect when a land contract agreement is entered into, but instead in when the deed is finally recorded at the end of the contract period. The “pop-up” is a provision of the 1994 Proposal A property tax assessment cap in which the state equalized value (market value) of newly-sold property becomes the basis for its property tax assessment, rather than the capped “taxable value” of the previous owner. The taxable value is lower as long as the assessed value of the property has increased since the last ownership transfer. Under a land contract, the deed is not transferred until the new owner has fully paid for the property, which may take many years.
Referred to the Committee on Tax Policy
