HB 1332, sponsored by Rep. Pat Sullivan (D–Covington), grants property tax deferral for business properties that demonstrate a financial loss of at least 20% of their annual revenue due to the economic impacts of COVID-19.

If the business meets this threshold and completes the necessary application, they may defer taxes due in April 2021. However, the property taxes are due and payable on or before October 31, 2021. After this date, deferred taxes may be assessed penalties and interest unless a payment agreement has been previously established.

This bill also includes provisions for local governments to receive interest-free loans from the state treasurer to backfill the deficit caused by delayed property tax revenue—these monies are available through the COVID-19 property tax deferral loan account. Local governments that receive these loans must repay the loan to the state treasurer within one calendar year from the date of the loan.

Dates to remember

HB 1332 is scheduled for public hearing in the House Finance Committee on January 26 at 1:30 pm. The bill is also scheduled for executive session in the House Finance Committee on January 28 at 8 am.