Residential Land Property Tax Classification

The act modifies the definition of the term "residential land" for the purpose of property tax classification. Currently, a parcel of land without a residential improvement is classified as residential land if it is contiguous with a parcel of land under common ownership upon which a residential improvement is located and if it is used as a unit in conjunction with the residential improvements located thereon. The act modifies classification for this type of parcel by:

• Requiring the parcel to have the identical owner as the adjacent parcel based on the record title;
• Requiring the parcel to have a related improvement that is essential to the use of a residential improvement located on the identically owned contiguous residential land; and
• Specifying that contiguity in this instance is not interrupted by an intervening local service street, alley, or common element in a common-interest community.

The act also removes from the definition parcels of land in a residential subdivision, the exclusive use of which land is established by the ownership of such residential improvements.

(Note: This summary applies to this bill as enacted.)