The proposed bill, known as the "Deluxe Second Home Surcharge Act," aims to impose an annual surcharge on deluxe second homes, defined as non-owner-occupied residential properties with a true cash value of $1,000,000 or more. The surcharge will be levied starting from the 2027 tax year, with rates varying based on the property's value: 2% for homes valued between $1,000,000 and $2,000,000, 3% for those between $2,000,000 and $3,000,000, 4% for homes between $3,000,000 and $4,000,000, and 5% for properties valued at $4,000,000 or more. The Department of Treasury will be responsible for the collection and administration of the surcharge, which will be collected alongside income taxes.

The bill also establishes a reimbursement fund to manage the proceeds from the surcharge, which will be used to compensate the state school aid fund and municipalities for qualified revenue lost due to certain tax exemptions and changes. The fund will also cover costs related to property tax calculators and provide support to local tax collecting units that offer public access to property tax information. The act will not take effect unless several related bills are enacted into law.