Provide a property tax exemption for certain owner-occupied residential property
Impact
If enacted, HB 970 would require that a property tax exemption application be filed annually by March 1 for the tax year in which the exemption is sought. The requirement for a ten-year ownership before eligibility would benefit long-term homeowners, particularly seniors, by providing them with a means to alleviate financial pressures associated with rising property taxes. This could lead to stability in the housing market for older residents who are intending to remain in their homes.
Summary
House Bill 970 aims to provide property tax exemptions for certain residential properties occupied by owners aged 55 years or older. To qualify for this exemption, the property must be owned and occupied as a primary residence for a minimum of ten years. The value of the exemption is calculated based on the increase in market value from a specified base year, meaning homeowners can have significant tax relief on appreciating property values, provided they meet all eligibility criteria.
Contention
The bill may generate discussion about how it differentiates between established long-term residents, and the potential impact on the state’s revenue from property taxes. While supporters argue that the bill is a necessary step to provide financial relief to senior homeowners, critics might raise concerns regarding the implications for public services funding, especially in communities dependent on property tax revenues. There's also the aspect of potential favoritism toward certain demographics, which can lead to debates about fairness in tax exemptions.