This bill modifies existing provisions related to homestead property tax credits and introduces a new residential property tax rebate, which will have significant implications for local and state government finances. It establishes a new category of eligible claimants for an additional homestead credit for individuals aged 18 and older, contingent upon their homestead's actual value not increasing due to new construction or renovations beyond necessary repairs. The credit is calculated as the difference between the current fiscal year's property taxes and 104% of the previous year's taxes, ensuring it is not less than zero. Additionally, the bill increases the homestead credit amount from the first $4,850 to the first $14,550 of actual value for each homestead and makes Code section 25B.7 inapplicable to this division for property taxes due in fiscal years beginning on or after July 1, 2027.

Moreover, the bill lowers the age requirement for elderly claimants from 70 to 65 years for those with a household income below 250 percent of the federal poverty level, while also changing the funding source for the elderly and disabled property tax credit from the state general fund to the taxpayer relief fund. It establishes a residential rebate program allowing homeowners to claim a $1,000 rebate for each fiscal year they qualify for the homestead credit, and renters can receive a $500 rebate for their primary residence. The bill also addresses funding for municipal police and firefighter retirement systems, shifting employer contribution responsibilities to the state general fund starting July 1, 2026, and includes overtime compensation in the definition of earnable compensation for certain retirement systems.

Statutes affected:
Introduced: 425.17, 425.23, 25B.7, 425.16, 425.39, 8.57E, 80.6, 97B.49C