Senate Bill 618 aims to amend existing tax laws to allow eligible veterans and surviving spouses who are renters to claim a property tax credit based on their rent payments. Currently, the law permits these individuals to claim a refundable income tax credit for property taxes paid on their principal dwelling, but it does not explicitly address renters. The bill introduces a definition for "rent constituting property taxes," which is set at 20% of the rent if heat is included and 25% if it is not. This change ensures that renters can benefit from the same tax relief as homeowners.

The bill includes specific amendments to the statutes, such as adding the ability for claimants to include "rent constituting property taxes" in their credit claims and clarifying that eligible spouses can claim credits based on their respective ownership interests or half of the total rent constituting property taxes paid. The new provisions will take effect for taxable years beginning on January 1, 2026.

Statutes affected:
Bill Text: 71.07(6e)(b), 71.07, 71.07(6e)(c)3