House Bill 365 Summary

• Creates a property tax cap exemption for homeowners who reside in their homestead and receive the homeowner exemption, capped at 10% of the purchase price for homes bought on or after January 1, 2025, or 10% of the average market value for homes purchased before that date.

• Homeowners become completely exempt from property taxes once they reach the property tax cap amount, provided they continue to meet homeowner exemption requirements.

• Allows homeowners to prepay all or part of the property tax cap amount, with prepaid taxes held by the state treasurer and distributed to counties annually for property tax payment.

• Requires county assessors to verify homeowner eligibility through applications and annually update homeowners on remaining balances toward the property tax cap on their tax bills.

• Amends property tax notice requirements to include status updates on property tax cap exemption applications and becomes effective January 1, 2025.