House Passes Bill Changing Homestead Credit Percentage Deadline

The House has passed House Bill 351, Property Tax – Homestead Property Tax Credit Percentage and Constant Yield Tax Rate – Deadlines, on second reader. This bill extends the deadline for local governments to set or change their homestead property tax credit percentage, moving it from November to March. 

The House adopted technical amendments presented by the State Department of Assessments and Taxation (SDAT). These amendments authorize SDAT to amend constant yield rates if the homestead tax credit percentage changes, and require a disclaimer in assessment notices that the taxable assessment may change if the homestead tax credit percentage changes.

MACo supported this bill. From MACo’s testimony

MACo supports this bill because it gives counties more time and flexibility to set their homestead property tax credit percentages. By moving the deadline to four months later, counties will have the opportunity to consider their most recent revenue estimates and budget plans for the coming fiscal year and the flexibility to adjust their homestead tax credit percentages as appropriate.

By March, counties are much further along in the process of planning their operating budgets for the upcoming fiscal year, and some may have already submitted their proposed operating budgets for consideration and approval. Moving this deadline to March gives counties greater opportunity to coordinate their homestead property tax credit percentage with their budget plans and needs for the upcoming fiscal year.