This bill promotes financial stability for senior homeowners by potentially shielding them from increasing property taxes as they age. The proposed changes are expected to assist many elderly citizens who may be on fixed incomes, therefore making it easier for them to remain in their homes without the burden of escalating property taxes over time. Additionally, it puts a framework in place for the Oklahoma Tax Commission to annually update income limits based on median county income, allowing for adaptation to economic changes.
Summary
HJR1042 is a proposed amendment to Section 8C of Article X of the Oklahoma Constitution, aimed at revising provisions relating to the fair cash value limitation on homesteads owned by individuals aged 65 or older. The bill seeks to prevent the increase of homeowner property tax assessments for eligible seniors as long as their households meet certain income thresholds. Specifically, if a single homeowner's gross household income does not exceed $75,000 or if a combined household of multiple owners keeps their total income below $150,000, they can maintain the original assessed value of their property for tax purposes starting January 1, 2025.
Contention
Though the intention behind HJR1042 is to provide financial relief for senior homeowners, there may be contentious debates surrounding the implementation of the income thresholds and their adjustments. Critics may argue that the amendments could lead to complications in local property tax revenues or create disparities between communities, depending on how income thresholds are determined. Furthermore, discussions might also focus on the long-term implications for property tax funding for local services, as certain demographics are provided tax relief while others are not.
Individual income tax: property tax credit; credit percentages; modify. Amends secs. 508, 510 & 522 of 1967 PA 281 (MCL 206.508 et seq.). TIE BAR WITH: SB 0345'25
Individual income tax: property tax credit; credit for disabled veterans or widow or widower of disabled veterans who rent or lease a homestead; increase. Amends secs. 506, 520, 522 & 530 of 1967 PA 281 (MCL 206.506 et seq.).
Individual income tax: income; certain references in the income tax act; make gender neutral. Amends secs. 311, 504 & 522 of 1967 PA 281 (MCL 206.311 et seq.). TIE BAR WITH: HJR F'23
Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0096'23
Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: HB 4895'23
Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0455'23
House Substitute for SB 300 by Committee on Taxation - Modifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, increasing the income limit for an income tax subtraction modification for social security income, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate, abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund, providing for certain transfers to the special city and county highway fund and decreasing the rate of ad valorem tax imposed by a school district.