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 in the education trust fund, and the bill enhances taxpayer information by clearly listing eligibility criteria and application processes for relief programs. Income thresholds for the low- and moderate-income homeowners property tax relief program have been increased, with new limits set at $65,000 for single individuals and $77,500 for married individuals or heads of households.

Additionally, the bill proposes significant changes to the low- and moderate-income homeowners property tax relief program, including lowering the maximum property value for tax relief from $220,000 to $165,000. The income limit for full tax relief for single individuals is raised from $23,100 to $27,000, and for heads of households, it increases from $29,400 to $39,500. A cap on tax relief is introduced, stating that no claimant can receive more than $1,100 in any fiscal year, with amounts adjusted annually for inflation. The bill 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