House Bill No. 701 Summary

• Exempts the first $125,000 or 50% of market value for assessment purposes of owner-occupied homesteads from property taxation, whichever is less, contingent on state tax commission certification of uniform appraisal in the county.

• Allows property taxes to be prorated based on changes in homestead exemption eligibility status during the tax year, calculated on a daily basis using the number of days the property qualifies for exemption.

• Establishes procedures for county assessors to investigate and recover improperly claimed or approved exemptions, with penalties including the recovered tax amount plus interest and late charges, recoverable within 7 years.

• Permits homesteads to retain exemption status during owner's active military service and allows exemption continuation for one year following the owner's death if the property remains part of the estate.

• Changes property tax payment deadline language in section 63-903 and makes all amendments effective January 1, 2025.