This bill amends existing laws related to the state education property tax and the low- and moderate-income homeowners property tax relief program. It requires the Department of Revenue Administration to receive and deposit revenues from the state education property tax into the education trust fund. Key changes include adjusting the education tax rate to generate $363,000,000 annually, with annual inflation adjustments based on the Consumer Price Index. Municipalities are mandated to pay all revenue to the Department for deposit, and the bill enhances taxpayer information by clearly listing eligibility criteria and application processes for relief programs. Additionally, income thresholds for the low- and moderate-income homeowners property tax relief program are increased, with new limits set at $65,000 for single individuals and $77,500 for married individuals or heads of households.

Significant modifications to the low- and moderate-income homeowners property tax relief program include reducing the maximum property value for tax relief from $220,000 to $165,000 and raising income limits for full tax relief—$27,000 for single individuals and $39,500 for heads of households. The bill caps tax relief checks at $1,100 per claimant and sets an aggregate limit of $30 million for total tax relief issued in a fiscal year, with annual inflation adjustments mandated. A committee is established to study the property tax relief program, focusing on extending benefits to tenants and analyzing the relationship between household income and property taxation. The committee will report its findings by November 1, 2025, and the provisions will apply to taxable periods ending on or after April 1, 2026, with an effective date of July 1, 2025.

Statutes affected:
Introduced: 76:3, 76:8, 76:11-a, 198:39, 198:57