This bill amends the conditions and procedures for the elderly tax exemption by increasing the income and asset thresholds required for eligibility. Specifically, it raises the minimum net income for single individuals from $13,400 to $23,300 and for married couples from $20,400 to $35,500. Additionally, the asset limit is increased from $35,000 to $60,900, excluding the value of the person's residence and certain land. The bill also introduces a provision for annual adjustments to these thresholds based on the Consumer Price Index, starting from the tax year beginning April 1, 2026.

Furthermore, the bill clarifies that municipalities that have already adopted the elderly exemption provisions will not need to re-adopt them following the publication of updated threshold amounts, which will only apply to increase exemptions. The changes will take effect for the 2027 tax year, with the act itself becoming effective on July 1, 2026. Overall, the bill aims to provide greater financial relief to elderly residents by updating the criteria for tax exemptions in line with current economic conditions.

Statutes affected:
Introduced: 72:39-a, 72:39-b
HB1296 text: 72:39-a, 72:39-b