Senate Committee Kills Homestead Property Tax Credit Application Repeal

The Senate Budget and Taxation Committee voted down SB 375, which would have repealed the application requirement for the Homestead Property Tax Credit. MACo opposed this legislation commenting that the application has improved the fairness of the program and ensures that only homeowners who reside in their homes receive the credit.  Until the application process was put in place, a substantial number of properties were enjoying this tax credit without actually qualifying under the law, such as rental properties or second homes.

From MACo’s written testimony,

MACo believes the General Assembly did the right thing by requiring the application. It has improved the administration of the program and provides a verification mechanism to ensure only eligible homeowners are receiving the credit. Abuse of the Homestead Credit is unfair to other taxpayers, as it depresses the tax base beyond the targeted intent of the policy.

For more on MACo’s 2015 legislation, visit the legislative database.

 

 

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