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 the maximum tax relief at $1,100 per fiscal year and sets a total limit of $30 million for tax relief checks issued annually. It also establishes a committee 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 is required to report its findings by November 1, 2025, and the act will take effect on July 1, 2025, applying to all taxable periods ending on or after April 1, 2026.

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