HB 1332, sponsored by Rep. Pat Sullivan (D–Covington), grants property tax deferral for business properties that demonstrate a financial loss of at least 25% of their annual revenue due to the economic impacts of COVID-19.

The bill originally granted property tax deferral to businesses that demonstrate a loss of at least 20% of revenue for calendar year 2020 (compared to calendar year 2019). However, the threshold for revenue loss was increased to 25% after receiving amendments in committee.

The bill received additional amendments during committee and now requires that an owner of real property receiving a deferral must pass the entire benefit to a tenant or sublessee if the tenant or sublessee is required by the lease or other contract to pay the property tax expense of the owner.

Most significantly, however, HB 1332 no longer includes provisions for local governments to receive interest-free loans from the state treasurer to backfill the deficit caused by delayed property tax revenue. The monies would have been available through a COVID-19 property tax deferral loan account managed by the state treasurer, and served as a critical, temporary backfill for the expansive property tax revenue loss cities are experiencing as a result of the pandemic.

Dates to remember

HB 1332 is scheduled for public hearing in the Senate Ways and Means Committee on March 16 at 4 pm.