This bill establishes the homeowner property tax reduction fund within the state treasury, aimed at providing property tax relief specifically for owner-occupied single-family dwellings. The Department of Revenue will oversee the fund, which will utilize its resources to lower the local effort for general education levies on these properties. Notably, the bill stipulates that interest accrued on the fund's moneys will remain within the fund, and expenditures must be budgeted through the general appropriation bill. Additionally, funds cannot be transferred to the general fund.

To support the homeowner property tax reduction fund, the bill mandates that a specified percentage of taxes collected from certain chapters of the law, starting August 1, 2027, will be deposited into the fund. The "applicable percent" is defined as three-tenths percent divided by the relevant tax rate. The bill also amends existing laws to allow for exceptions to the general requirement that tax revenues be credited to the general fund, ensuring that funds are directed to the new homeowner property tax reduction fund instead. Furthermore, a one-time transfer of $55,896,576 from the general revenue replacement fund to the homeowner property tax reduction fund is scheduled for July 1, 2026.

Statutes affected:
House State Affairs Engrossed, 03/05/2026: 10-46-48, 10-46E-9, 10-58-5
Enrolled, 03/12/2026: 10-46-48, 10-46E-9, 10-58-5