HB3654 Summary

• Allows chief county assessment officers in counties with fewer than 3,000,000 inhabitants to record tax liens against properties that received one or more erroneous homestead exemptions.

• Requires assessment notices in general assessment years to include information about available homestead exemptions, current exemptions on the property, potential penalties and interest, and a 60-day grace period to self-report errors.

• Property owners who self-report erroneous exemptions within 60 days and pay back taxes plus interest are exempt from penalties; owners with 1-2 erroneous exemptions face 10% annual interest, while those with 3+ exemptions face 50% penalty plus 10% annual interest.

• Establishes a 5-month amnesty period beginning on the effective date allowing taxpayers owing back taxes from pre-2013 erroneous exemptions to pay all arrearages without interest or penalties; amnesty is forfeited if full payment is not made during the period.

• Provides hearing procedures before lien recording, exempts certain heirs from penalties, and limits lien validity against bona fide purchasers and certain creditors whose rights arose before lien filing.