HB 1363 Summary

• Establishes "qualified installment contract" definition requiring contracts for real property or mobile/manufactured home purchases to include: contract or memorandum recorded with county recorder, buyer pays property taxes, and specified terms (total price, payment amounts, payment schedule, seller issues deed upon full payment).

• Extends existing property tax deductions to buyers purchasing property under qualified installment contracts, allowing deductions previously available only to mortgage holders and property owners.

• Prohibits sellers who have sold property under qualified installment contracts from claiming property tax deductions on that same property.

• Creates liability for property owners who misrepresent residential leases as qualified installment contracts to enable improper deductions, requiring payment of additional taxes plus 10% civil penalty.

• Effective July 1, 2014.