7% Property Tax Cap Passes

The 7% bill passed as House Bill 664 with Senate Amendment #2.
Waits for Governor's signature

While this legislation will provide the greatest relief in the first year - we are very concerned with what will happen to homeowners who do not qualify for the Long-Time Occupant Homestead Exemption (10 years + income restrictions). These homeowners are going to be faced with huge increases in the second and third years.

This legislation also does not achieve our goal of predictability and a clear and transparent property tax system.

We vow to continue the fight for property tax REFORM.
Stay with us for ACQUISITION-BASED ASSESSING.


To the bill:
Essentially, Senate Amendment 12 increases the Alternative general homestead exemption (the 7% cap) to:

$33,000 in the first year
(up from $30,000 in SB 13);

$26,000 in the second year
(up from $24,000 in SB 13);

and $20,000 in the third year
(up from $18,000 in SB 13).

The intent of this bill is to "phase out" the Alternative General Homestead Exemption (the 7% cap), and replace it with a Long-Time Occupant Homestead Exemption.

The Long-Time Occupant Homestead Exemption would apply to those who reside in their homes ten years or more, and who earn under $75,000 household income - to get a 7% assessment cap.

Those who have a household income of $75,000 - $100,000 would qualify for a 10% cap.

The Long-Time Occupant Homestead Exemption cannot take effect until the second year of the legislation, and so there are additional one-time increases in the Alternative General Homestead Exemption in the first year - if your EAV increased by 100% or more, you have an additional $7,000 exemption (or $40,000 cap); if your EAV increased by 80% - 100% you get an additional $2,000 exemption (or $35,000 cap).

The bill also includes:
- Disabled veterans exemption
- Returning Veteran's homestead exemption (one-time benefit)
- Disabled persons' homestead exemption
- Disabled veterans standard homestead exemption
- An increase to the senior citizens homestead exemption
- An increase in the senior citizens assessment freeze homestead exemption
- An abatement for the residence of a surviving spouse of a fallen police officer or rescue worker

The bill also establishes a Property Tax Reform and Relief Task Force selected from the House and the Senate.