This bill modifies property tax exemptions for qualifying seniors, veterans with disabilities, and surviving spouses of fallen service members or veterans who died from service-related injuries. Starting with the 2025 property tax reassessment cycle, the exemption will cover 50% of a home’s value up to half of the state’s median home value, rather than the current $200,000 cap. If the median home value decreases, the exemption will remain based on the prior cycle’s value.
Additionally, if voters approve a constitutional amendment in 2026, seniors or surviving spouses who previously qualified for the exemption from 2016 onward will be allowed to claim the exemption on a new primary residence without needing to meet the 10-year ownership requirement.
Summary
For property tax years commencing during property tax
reassessment cycles (cycles) that begin on or after January 1, 2025, the bill changes the amount of the exemptions for the owner-occupied primary residence (residence) of a qualifying senior, a veteran with a disability, or the surviving spouse of a United States armed forces service member who died in the line of duty or veteran whose death resulted from a service-related injury or disease (exemptions) from 50% of the first $200,000 of actual value of the residence to 50% of an amount of actual value of the residence equal to 50% of the estimated state median home value (median home value) for the state; except that, if the median home value declines, the exemption amount continues to be calculated based on the median home value used to calculate the exemption amount for the property tax years included in the prior cycle.
The state constitution currently only allows a senior who has
owned and occupied the senior's residence for 10 years, or the surviving spouse of such a senior (surviving spouse), to claim the exemption. If at the 2026 general election the voters of the state approve a referred constitutional amendment to allow a senior or a surviving spouse who has previously qualified for the exemption for 2016 or any later year for a prior residence to claim the exemption for the senior's or surviving spouse's current residence regardless of how long the senior or surviving spouse has owned and occupied that residence, the bill makes the statutory changes needed to conform to the constitutional amendment.
