On February 11, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in opposition to HB 726 – Homestead Property Tax Credit – Eligible Partners – Alteration.
This bill opens up property tax savings under the Homestead Property Tax Credit to include additional residences beyond “owner-occupied” homes. Doing so would dramatically undermine the longstanding policy purpose of the credit – to ensure stability in tax bills after purchasing a principal residence.
Under current law, the credit applies only to a homeowner’s principal residence. The owner must live in the dwelling for at least six months in a year unless temporarily unable to do so due to illness or special care.
However, expanding the credit to additional residences, including condominiums, apartments, and other properties, would cost counties millions of dollars from their primary revenue source. As such, counties could be forced to eliminate their voluntary Homestead Property Tax Credit expansions where feasible or cut budgets for schools, housing, public health, public safety, roadway maintenance, and other essential public services.
HB 726 subverts the primary policy goal of this longstanding and successful homeowner program and jeopardizes millions of dollars in revenue for essential local services. For these reasons, MACo urges the Committee to issue an UNFAVORABLE report on HB 726.
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