The bill establishes a partial property tax exemption for certain residential properties sold in disaster areas, specifically those acquired from the United States Department of Housing and Urban Development (HUD). It introduces a new subsection to Section 427.1 of the Code 2025, which outlines that residential properties sold by HUD to owners receiving the homestead tax credit will be eligible for this exemption if the sale aims to provide housing following a major disaster or disaster emergency. The exemption lasts for four assessment years, with the percentage of the actual value exempted decreasing over time: 80% in the first year, 60% in the second, 40% in the third, and 20% in the fourth year.

The bill clarifies that the exemption applies only to properties located in areas declared as major disaster zones by the President or designated as disaster emergency areas by the Governor. The language of the bill emphasizes the intent to support housing needs in the aftermath of disasters while providing a structured reduction in property tax liability for qualifying homeowners.

Statutes affected:
Introduced: 427.1