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Senate Bill 337 would allow five-year prepayment tax exemptions for residential subdivisions, sponsor says it could lower housing costs

House Taxation Committee · April 8, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Sen. Greg Hertz proposed SB 337 to let developers prepay five years of existing property taxes (plus a 5% fee) to receive a five-year exemption for residential subdivision lots; exemption ends for each lot when a habitable dwelling is available and the whole exemption ends at 95% buildout. Proponents said prepayment protects local revenue while easing developers' carrying costs; DOR raised state fiscal impacts for school equalization.

Sen. Greg Hertz told the House Taxation Committee that Senate Bill 337 would permit a developer to apply for a five-year exemption on newly subdivided residential lots after prepaying five years of existing property taxes plus a 5% fee; counties would certify the prepayment and DOR would administer exemptions. The exemption would end for each lot when a habitable dwelling is available for occupancy; the entire exemption terminates when 95% of lots in the development are built…

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