Senate Bill 1375 Summary

• Allows eligible property owners to claim one exemption from school operating property taxes on their principal residence by filing an affidavit on or before May 1 with the local tax collecting unit.

• Permits individuals to claim exemptions for a current principal residence and a second parcel occupied by a totally and permanently disabled person under the owner's direct care and supervision, expanding from the one-exemption rule.

• Establishes procedures for denying, appealing, and rescinding exemption claims, with interest rates of 1.25% per month accruing on disputed taxes and distributed to local units, the Department of Treasury, and counties.

• Authorizes counties to audit principal residence exemption claims every 5 years (beginning 2009) or conduct annual audits if the county does not elect to audit, with the Department of Treasury conducting audits in non-participating counties.

• Adds provisions allowing partial exemptions for bed and breakfast properties and cooperative housing corporations based on the portion of property used exclusively as a principal residence.