SB 1540 Summary

• Increases homestead exemption limit from $400,000 to $400,000, with annual cost-of-living adjustments beginning January 1, 2024, rounded to nearest $100.

• Expands homestead exemption to include park model trailers, motor homes, travel trailers, fifth wheel trailers, houseboats, and manufactured homes in addition to mobile homes.

• Clarifies that homestead exemption does not attach to cash proceeds from refinancing homestead property, only from voluntary or involuntary sale.

• Adds provision for bankruptcy cases allowing 100% exemption of homestead property value increases during bankruptcy proceedings if property value at filing does not exceed exemption limit.

• Adds new personal property exemptions including federal and state earned income tax credits and child tax credits, and establishes $2,000 prepaid rent exemption for non-homestead claimants.