House Bill 5935 Summary

• Expands principal residence exemption eligibility for individuals residing in assisted living facilities or nursing homes by allowing them to retain the exemption on previously exempt property without time limits if the property meets specified conditions (unoccupied, not leased, not used for business).

• Modifies conditional rescission provisions to permit owners who move to a new principal residence to maintain exemption on the former residence for up to 3 tax years if the property is for sale and remains unoccupied and unleased.

• Requires annual verification by December 31 that properties subject to conditional rescission meet all exemption conditions, with failure to verify resulting in assessor denial of the exemption.

• Imposes penalties of $5.00 per day (maximum $200.00) on owners who fail to file required rescission forms within 90 days of ceasing principal residence use, with penalties deposited into the state school aid fund.

• Applies to assisted living facilities and nursing homes defined as licensed adult foster care facilities or homes for the aged.