The bill establishes a partial property tax exemption for certain residential properties sold by the United States Department of Housing and Urban Development (HUD) in disaster areas. Specifically, it applies to properties sold to owners who are receiving the homestead tax credit and aims to provide housing for individuals affected by major disasters or disaster emergencies. The exemption lasts for four assessment years, with the percentage of the actual value exempted decreasing each year: 80% in the first year, 60% in the second, 40% in the third, and 20% in the fourth year.

The new legal language added to Section 427.1 of the Code 2025 outlines the criteria for eligibility and the structure of the exemption. The bill emphasizes that the exemption is intended to support recovery efforts in areas declared as major disaster zones by the President or the Governor. The inclusion of this exemption is designed to alleviate the financial burden on homeowners in these affected areas, encouraging the purchase and rehabilitation of properties to provide necessary housing.

Statutes affected:
Introduced: 427.1