The bill establishes the homeowner tax reduction fund within the state treasury, which will be administered by the Department of Revenue. The fund is designed to provide property tax rebates for owner-occupied single-family dwellings. It stipulates that interest earned on the fund's moneys will remain in the fund, and expenditures must be budgeted through the general appropriation bill. Additionally, the bill specifies that funds from the homeowner tax reduction fund cannot be transferred to the general fund.

The bill outlines a process for calculating and distributing tax rebates to eligible property owners. By June 30 each year, the Department of Revenue will determine the maximum rebate amount based on a formula that considers the number of eligible property owners and the total appropriated funds. Each eligible property owner will receive a rebate equal to the lesser of the calculated amount or the total taxes levied on their property exceeding $250. Any excess funds from the rebates will either remain in the homeowner tax reduction fund or be allocated to cover administrative costs associated with the rebate program.