HB 489 Summary

• Establishes a Vacant Homes Special Fund under Chapter 201H to collect revenues from a new vacancy surcharge and distribute funds for rental assistance programs similar to federal Section 8 housing assistance.

• Imposes an annual surcharge on owners of residential real property vacant for 180 or more days per year, calculated as 4% of the average annual rental value plus 4% of estimated general excise tax that would have been collected if the property were occupied.

• Requires property owners who own residential real property not used as their primary residence to obtain a general excise tax license and file annual returns by February 20 disclosing the number of days their property was occupied or vacant.

• Exempts from the surcharge: properties vacant due to owner death (12 months), major renovations (24 months), owner hospitalization (12 months), employment relocation (6 months), court/executive orders, military deployment, and properties owned by federal/state governments.

• Mandates counties provide the Department of Taxation an annual list by January 1 of residential properties classified as not owner-occupied, and requires the Department of Business, Economic Development, and Tourism to publish average rental values by January 15 each year to calculate surcharge amounts; takes effect January 1, 2026.