HB 726 – Homestead Property Tax Credit – Eligible Properties – Alteration will not advance from the House Ways and Means Committee. The bill is dead for the 2025 session.
MACo opposed the bill, which sought to expand Homestead Property Tax Credit eligibility beyond owner-occupied homes, undermining its core purpose of ensuring tax stability for primary residences. Counties opposed the measure due to its $30 million per annum fiscal impact, which could have led to cuts in voluntary local credit expansions or essential public services.
The Homestead Property Tax Credit acts to cap assessments of owner-occupied residences so that a resident’s property tax burden does not increase substantially over the prior year. It provides consistency for taxpayers who live in and own their homes. Nearly every county has exercised its authority to lower its cap, giving security to homeowners beyond that required by the State.
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.
Previous Conduit Street Coverage: MACo: Homestead Credit Expansion Subverts Program’s Effectiveness
More on MACo’s Advocacy:
