This bill establishes a property tax exemption for certain residential properties occupied by owners aged 55 and older, provided they have owned the property for at least 10 years. The exemption applies to class four residential properties that serve as the owner's primary residence. The exemption amount is determined by the difference between the market value in the current tax year and the market value in the base year, which is defined as the year the exemption application is approved. However, the exemption will terminate if the property is sold to someone other than an immediate family member or if there is new construction, remodeling, or reclassification of the property, with specific exclusions for general maintenance.

Additionally, the bill outlines the application process, requiring applicants to file by March 1 of the tax year for which the exemption is sought. The application must affirm ownership and primary residence status, and the department may investigate the information provided. The bill also includes definitions for key terms such as "base year," "immediate family member," "primary residence," and "single-family dwelling." The provisions of this act will take effect for property tax years beginning after December 31, 2025.