The bill is designed to ease the financial burden of property taxes on low-income senior citizens by assuring that their taxes do not increase beyond a certain threshold. This change aims to protect seniors on fixed incomes, thereby helping them maintain their homes and manage expenses during retirement. With a more consistent income limit across the board, the bill also aims to create a clearer framework for local assessment officers in determining eligibility for the exemption.
SB2030, introduced by Senator Laura M. Murphy, amends the Property Tax Code, specifically enhancing the low-income senior citizens assessment freeze homestead exemption. For the taxable year 2023, the bill establishes a maximum household income limit of $75,000 for qualified properties in counties with populations of 3,000,000 or more, and $65,000 for counties with fewer inhabitants. From 2024 onwards, the maximum income limit for all qualified properties is standardized at $75,000. Additionally, the bill modifies the Senior Citizens Real Estate Tax Deferral Act to align with this income threshold, ensuring consistency in tax relief measures for seniors.
Despite its goodwill towards supporting senior citizens, SB2030 does prompt some concerns among local government officials regarding its potential long-term implications on county revenues from property taxes. Critics argue that raising the income limit without considering local economic conditions could shift financial burdens away from seniors and onto municipalities, which may need to make up for funding shortfalls elsewhere. Advocacy groups remain divided on whether the bill sufficiently addresses the unique challenges faced by low-income seniors in different geographical areas, especially where real estate markets can vary widely.