TO EXEMPT FROM GROSS INCOME A GAIN BY A TAXPAYER RESULTING FROM THE ACQUISITION OF PROPERTY UNDER THE RIGHT OF EMINENT DOMAIN OR THE THREAT OF CONDEMNATION.

Fiscal Impact Statement Bill: SB204 Bill Subtitle: TO EXEMPT FROM GROSS INCOME A GAIN BY A TAXPAYER RESULTING FROM THE ACQUISITION OF PROPERTY UNDER THE RIGHT OF EMINENT DOMAIN OR THE THREAT OF CONDEMNATION. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Sen. Penzo and Reps. J. Moore, Ray, and Rose Basic Change: SB204 amends § 26-51-404(b) to create a new exclusion from gross income for state income tax purposes. SB204 excludes income that a taxpayer receives from an entity that acquires real property from the taxpayer under eminent domain or threat of condemnation. This includes the involuntary conversion of real property by a state, county, or city, as well as by municipal utilities and other companies with the power of eminent domain. SB204 is effective for tax years beginning on or after January 1, 2025. Fiscal Impact: FY2026 – $3.8M General Revenue Reduction Taxpayer Impact: A taxpayer that has property taken due to eminent domain or threat of condemnation will not have to report gains resulting from the acquisition of property under the right of eminent domain. Resources Require