EXTEND PROPERTY TAX EXEMPTION PERIOD

SB 58 extends the property tax exemption period for project property in metropolitan redevelopment areas from seven to fourteen years for properties acquired by local governments on or after January 1, 1986. During this extended period, lessees and owners of substantial beneficial interests must pay annual amounts equal to the property taxes that would have been due if the property were not exempt, based on the valuation from the year before acquisition. The county treasurer collects these payments and distributes them as if they were regular property taxes. This change applies only to properties acquired after 1986, leaving existing rules for properties acquired before that date unchanged.