# Does a sale trigger a property-tax reassessment? State-by-state rules for commercial real estate

Last updated: 2026-09-27. Derived from the Rolling Basis reassessment rules registry (the same rules the estimate engine applies). Not legal or tax advice.

Only 7 of the 51 jurisdictions Rolling Basis models (all 50 states plus DC) reassess commercial property because it sold: Alabama, Arkansas, California, Florida, Michigan, Oklahoma, South Carolina. Everywhere else, the assessor values property on its own cycle or by statutory formula, so a sale is evidence rather than a trigger, and the buyer's tax moves only as fast as the next reappraisal.

## Reassessment archetypes

- **Resets to purchase value**: A change of ownership sets a new assessed value at roughly the purchase price, then a statutory cap limits growth.
- **Sale removes the seller's cap**: The seller's capped assessed value jumps to full market value on transfer; the sale removes a cap the seller had accrued.
- **Annual market value, no sale reset**: No transfer trigger. The assessor carries the parcel at market value on its own cycle; a sale is evidence it may use at the next reappraisal, not a statutory step-up.
- **Statutory formula, no sale reset**: No transfer trigger, and value is decoupled from price: a statutory formula drives the taxable base, which a sale does not re-anchor.

## Rules by state

| State | Resets on sale? | Archetype | Assessment ratio | Commercial growth cap | Statutory source |
| --- | --- | --- | --- | --- | --- |
| Alabama | Yes | Sale removes the seller's cap | 20% | 7%/yr | Code of Ala. §40-8-1 (classification/ratios, Amendment 373); §40-7-2.2 + Ala. Admin. Code r. 810-4-1-.28 (Act 2024-344/HB73 7% cap + ownership-change removal); ALDOR '7% Cap Information — HB73' page; Alabama Personal Property Appraisal Manual (FF&E, Class II, uncapped). |
| Alaska | No | Annual market value, no sale reset | 100% | None | AS 29.45.110 (Full and true value); Anchorage Municipal Code Ch. 12.15 & 12.10; muni.org Property Appraisal. |
| Arizona | No | Statutory formula, no sale reset | 15.5% | 5%/yr | AZ Prop 117 / ARS §42-13301 (LPV 5% cap); §42-15001 & SB1093 (Class 1 ratio). |
| Arkansas | Yes | Sale removes the seller's cap | 20% | 10%/yr | Ark. Const. Amdt. 59 (20% assessment ratio); Ark. Const. Amdt. 79 (5% homestead / 10% non-homestead annual cap on reappraisal increases); Ark. Code Ann. §26-26-1122 (assessed value definition), §26-26-1123 (sale of real property removes the cap; second-assessment-date rule). |
| California | Yes | Resets to purchase value | 100% | 2%/yr | CA Prop 13 (Cal. Const. art. XIII A); RTC §§60–64, 110.1, 51; intangibles per Elk Hills Power (2013) & SHC Half Moon Bay (2014). |
| Colorado | No | Annual market value, no sale reset | Varies (25% typical) | None | CO SB24-233 (nonresidential assessment rate 27%→25%); biennial reappraisal (odd years, June 30 date). |
| Connecticut | No | Annual market value, no sale reset | 70% | None | Conn. Gen. Stat. §12-62a (70% assessment ratio), §12-62 (5-yr revaluation cycle, 10-yr physical inspection), §12-63d (bar on sale-price-based interim reassessment, PA 88-321), §12-62c (municipal option to phase in revaluation increases over up to 5 yrs), §12-41 (annual personal property declaration). |
| Delaware | No | Annual market value, no sale reset | 100% | None | 9 Del. C. §8306(a) (true-value/fair-market-value standard, as amended); In re Del. Pub. Sch. Litig., 239 A.3d 451 (Del. Ch. 2020) (Delawareans for Educ. Opportunity v. Carney); New Castle County, Kent County, and Sussex County reassessment FAQ/notice pages (2024-2025 completion); Delaware HB 62 (5-year reassessment cycle). |
| District of Columbia | No | Annual market value, no sale reset | 100% | None | D.C. Code §47-820 (annual assessment at estimated market value), §47-812 (tiered Class 2 commercial rates), §47-813 (property classes), §47-1508/DC Form FP-31 (separate business personal-property tax). |
| Florida | Yes | Sale removes the seller's cap | 100% | 10%/yr | FL reset mechanic: change-of-ownership removal of the 10% non-homestead assessment cap (Fla. Const. art. VII §4; §193.1554–1556, F.S.). |
| Georgia | No | Annual market value, no sale reset | 40% | None | O.C.G.A. §48-5-7 (40% ratio), §48-5-2 (FMV); HB 581 (2024) repealed the sale-price cap eff. 1/1/2025. |
| Hawaii | No | Annual market value, no sale reset | Varies (100% typical) | None | County real property ordinances (Honolulu ROH §8; Maui/Hawaii/Kauai codes); HI abolished personal property tax 1947. |
| Idaho | No | Annual market value, no sale reset | 100% | None | Idaho Code §63-205 (annual assessment at market value as of Jan 1), §63-314 (appraise-or-index annually; 5-year full-reappraisal cycle), §63-208 (assessor valuation rules; the statute's 90%-110% band is a ratio-study accuracy/equalization standard, NOT a fractional assessment ratio), §63-602KK and §63-602G (personal-property and homeowner exemptions, see caveats). |
| Illinois | No | Annual market value, no sale reset | Varies (25% typical) | None | Cook County classification ordinance (25% commercial LOA) + IDOR state equalization multiplier; downstate 33.33% (35 ILCS 200). |
| Indiana | No | Annual market value, no sale reset | 100% | None | IC 6-1.1-4 (assessment); IC 6-1.1-4-4.5 (annual trending); IC 6-1.1-4-4.2 (4-year cyclical reassessment); IC 6-1.1-20.6 & Ind. Const. Art. 10 §1 (3% circuit breaker); IC 6-1.1-3 & 6-1.1-3-7.2 (business personal property, $80k exemption). |
| Iowa | No | Annual market value, no sale reset | 90% | None | Iowa Code §441.21 (assessment limitation / rollback, biennial reassessment); 2013 SF 295 (commercial/industrial rollback reform, effective 2014); Iowa DOR annual rollback certification (2025 residential rollback ≈44.53% cited for contrast — commercial/industrial is the flat 90%, not this recalculated figure). |
| Kansas | No | Annual market value, no sale reset | 25% | None | Kan. Const. Art. 11 §1 (Class 2 Subclass 6 commercial 25%); K.S.A. 79-1476, 79-1460 (annual reappraisal); K.S.A. 79-223 (post-6/30/2006 commercial M&E exemption). |
| Kentucky | No | Annual market value, no sale reset | 100% | None | Ky. Const. §172 (fair cash value); KRS 132.220 (annual assessment date); KRS 132.690 (annual revaluation, quadrennial physical inspection). |
| Louisiana | No | Annual market value, no sale reset | Varies (15% typical) | None | La. Const. art. VII §18(B),(F); La. R.S. 47:2321-2323 (FMV/income approach); Orleans single assessor since 2007. |
| Maine | No | Annual market value, no sale reset | Varies (100% typical) | None | 36 M.R.S. §701-A (just value defined), §327 (minimum assessing standards / 70–110% certified-ratio band), §691–700-B (BETE); Me. Const. Art. IX §8 (uniform taxation). |
| Maryland | No | Annual market value, no sale reset | 100% | None | Md. Tax-Property Article (triennial reassessment; 100% full cash value; 3-year phase-in of increases; Homestead cap is residential-only). |
| Massachusetts | No | Annual market value, no sale reset | 100% | None | M.G.L. c.59 §38 (annual 100% FCV), §21C (Prop 2½ levy cap), §5C (classification / split rate). |
| Michigan | Yes | Sale removes the seller's cap | 50% | 5%/yr | MI Proposal A: Mich. Const. art. IX §3 (assessment ≤ 50% of true cash value); MCL 211.27a (taxable-value cap at lesser of 5%/CPI, uncapped on transfer of ownership). |
| Minnesota | No | Annual market value, no sale reset | Varies (2% typical) | None | Minn. Stat. §273.13 subd. 24 (class rate); §273.01/§273.11 (Jan 2 assessment, 100% EMV); §275.08 (local tax capacity rate); Ch. 272 (taxable-property scope, no general business personal property). |
| Mississippi | No | Annual market value, no sale reset | 15% | None | Miss. Const. Art. 4 §112 (class ratios); Miss. Code §27-35-4 (rates of assessment); §27-35-165 (reappraisal plan approval/oversight); 35 Miss. Admin. Code Pt. VI, Subpt. 02, Ch. 06, R. 6-02-06-301 (four-year update cycle); §27-39-321 (jurisdiction-level levy cap, distinct from an assessment cap). |
| Missouri | No | Annual market value, no sale reset | 32% | None | Mo. Rev. Stat. §137.115 (biennial cycle; 32% commercial Subclass 3), §137.016; Mo. Const. art. X §4(b) classification, §§16-24 Hancock levy rollback. |
| Montana | No | Annual market value, no sale reset | 1.9% | None | Mont. Code Ann. §15-7-111 (biennial reappraisal cycle, in place since TY2015), §15-6-134 (Class Four commercial/industrial rate, as amended by 2025 HB 231 / SB 542), §15-6-138 (Class Eight business equipment); Lincoln Institute of Land Policy, 50-State Property Tax Comparison Study (taxes paid 2025, Billings MT). |
| Nebraska | No | Annual market value, no sale reset | 100% | None | Neb. Rev. Stat. §77-201 (real property taxed at actual value; ag/hort land at 75% — not applicable to commercial), §77-112 (actual value = market value, professionally accepted mass appraisal methods), §77-1301/-1311 (Jan 1 assessment date; annual assessment roll deadline), TERC annual assessment/sales-ratio equalization (Neb. Rev. Stat. ch. 77, art. 5; 350 Neb. Admin. Code ch. 50). |
| Nevada | No | Statutory formula, no sale reset | 35% | ~8%/yr on the tax bill | NRS 361.225 (35% ratio), 361.227 (taxable value), 361.4722 (abatement). |
| New Hampshire | No | Annual market value, no sale reset | Varies (100% typical) | None | RSA 75:8-a (five-year revaluation); RSA 75:8 as construed in Merrimack Premium Outlets, LLC v. Town of Merrimack, 174 N.H. 481 (2021); NH DRA Equalization Bureau annual ratio studies (90–110% target); NH DRA 2025 Municipal Tax Rates report. |
| New Jersey | No | Annual market value, no sale reset | Varies (100% typical) | None | N.J.S.A. 54:4-23 (true-value standard); N.J.S.A. 54:4-63.2 et seq. (added assessments); NJ Div. of Taxation Chapter 123 tables (Director's Ratio); Atlantic City casino PILOT — P.L.2016, c.5 (N.J.S.A. 5:12-173.1 et seq., 'Casino Property Tax Stabilization Act'). |
| New Mexico | No | Annual market value, no sale reset | 33.33% | None | NMSA 1978 §7-36-21.2 (residential-only 3% cap — see the section's own title); NMSA 1978 §7-37-3 (33-1/3% tax ratio, all classes); NMSA 1978 §7-38-12.1 (transfer affidavit, residential property transfers only); Santa Fe County Assessor FAQ (confirms non-residential is excluded from the 3% limitation and valued at market annually); Bernalillo County non-residential catch-up reassessment reporting (Commercial Association of Realtors NM, 2024–2025) documenting average ~47% and individual >700% single-year non-residential increases — evidence no cap constrains commercial value. |
| New York | No | Annual market value, no sale reset | Varies (45% typical) | None | NYC DOF Class 4 (45% ratio, income approach, 5-yr phase-in); NY RPTL uniform-percentage assessment; selective-reassessment prohibition. |
| North Carolina | No | Annual market value, no sale reset | 100% | None | N.C.G.S. §105-286 (octennial reappraisal), §105-287 (no mid-cycle market change), §105-283/-284 (100% true value). |
| North Dakota | No | Annual market value, no sale reset | 5% | None | N.D. Cent. Code §57-02-11 (Feb. 1 assessment date, annual valuation), §57-02-27 (50% assessed value; 10% commercial / 9% residential taxable-valuation percentage), §57-02-08(25) (1969 Session Laws ch. 528, eff. 1970 — general personal property exempt from assessment). |
| Ohio | No | Annual market value, no sale reset | 35% | None | ORC 5715.01(B) / OAC 5703-25-05(B) (35% ratio); ORC 5713.01 (sexennial reappraisal); ORC 5715.33 (triennial update); ORC 5713.03 (no mandatory value change outside reappraisal/update years). |
| Oklahoma | Yes | Sale removes the seller's cap | Varies (11% typical) | 5%/yr | Okla. Const. art. 10 §8B (5% cap, removed on transfer of title; implemented by 68 O.S. §2817.1) and §8 (11–13.5% real-property assessment ratio, frozen by SQ 675/1996). |
| Oregon | No | Statutory formula, no sale reset | 100% | 3%/yr | ORS 308.146 (MAV/AV determination + reset-event list); OAR 150-308-0100 (MAV on property-class change); Oregon DOR Maximum Assessed Value Manual (150-303-438); Multnomah County DART parcel roll (ROLLM50 field). |
| Pennsylvania | No | Annual market value, no sale reset | Varies (100% typical) | None | PA First Class County Assessment Law (72 P.S. §5341.1 et seq.); Philadelphia Actual Value Initiative; PA Const. art. VIII §1 (uniformity). |
| Rhode Island | No | Annual market value, no sale reset | Varies (100% typical) | None | R.I. Gen. Laws §44-5-11.6 (9-yr revaluation / 3-yr statistical update cycle), §44-5-12 (full and fair cash value, or uniform % thereof ≤100%), §44-5-15 (annual tangible personal property account); RI Division of Municipal Finance, FY2026 Tax Rates by Class of Property (tax roll year 2025, assessment date 12/31/24). |
| South Carolina | Yes | Resets to purchase value | 6% | 15% per 5-year cycle (voided by the sale) | SC Code §12-37-3140 (ATI reset), §12-37-3135 (25% ATI exemption), §12-43-220 (6% commercial / 10.5% BPP), §12-37-3150 (>50% entity trigger). |
| South Dakota | No | Annual market value, no sale reset | Varies (85% typical) | None | SDCL 10-6-119 (full and true value, formerly Sec. 10-6-33), SDCL 10-3-41 (85% median level of assessment), SDCL 10-6-154 (assessment notices); SD Dept. of Revenue "Property Tax 101" and "Property Tax Information Guide 2025" (dor.sd.gov). |
| Tennessee | No | Annual market value, no sale reset | 40% | None | TCA §67-5-801 (40% commercial real; 30% commercial personal property); county 4/5/6-year reappraisal cycles. |
| Texas | No | Annual market value, no sale reset | 100% | None | Tex. Tax Code §23.01 (market value), §25.18 (reappraisal cycle), §23.23 (homestead-only cap), §42.26 (equal & uniform). |
| Utah | No | Annual market value, no sale reset | 100% | None | Utah Code §59-2-103 (100% FMV assessment; residential-only 45% exemption), §59-2-102(13) (market value defined), §59-2-303 (annual update requirement), §59-2-303.1 (mandatory cyclical appraisals — 5-year detailed review), §59-2-1115 (personal property exemption threshold). |
| Vermont | No | Annual market value, no sale reset | Varies (100% typical) | None | 32 V.S.A. §3481 (fair market/listed value definition); Act 68 of 2023 (reappraisal-trigger overhaul, 6-year cycle); Vt. Dept. of Taxes Equalization Study methodology and annual Education Property Tax Rate letters (CLA / statewide adjustment). |
| Virginia | No | Annual market value, no sale reset | 100% | None | Code of Va. §58.1-3201 (100% FMV), §58.1-3252/-3253 (reassessment cycles), §58.1-3500 (separate BPP), §58.1-1100 (intangibles segregated to state). |
| Washington | No | Annual market value, no sale reset | 100% | None | RCW 84.40.030 (100% value), Ch. 84.41 (annual reval), Ch. 84.55 (district levy cap — not a value cap), Ch. 82.45 (REET, separate transfer tax). |
| West Virginia | No | Annual market value, no sale reset | 60% | None | W.Va. Const. Art. X §1 (equal & uniform taxation at true and actual value); W. Va. Code §11-1C-1 (60% assessment ratio, three-year canvass w/ annual adjustment); §11-3-1 (July 1 assessment date); WV Tax Division Property Tax Rates (Class III/IV maximum regular levies). |
| Wisconsin | No | Annual market value, no sale reset | 100% | None | Wis. Stat. §70.32 (full value); DOR 'Wisconsin's Equalized Values' (assessed/equalized ratio, 10%/4-yr rule); 2023 Wisconsin Act 12 / Wis. Stat. §70.111(27) (personal property tax repeal, eff. Jan 1, 2024 assessment). |
| Wyoming | No | Annual market value, no sale reset | 9.5% | None | WY Const. Art. 15 §11 (commercial/industrial 9.5%); Wyo. Stat. §39-13-103 (annual valuation); 2024 Constitutional Amendment A + HB45 (4% cap — residential-only). |

Source: https://rollingbasis.co/guide/state-reassessment-rules