HB-4861 Summary

• Amends the principal residence property tax exemption law to clarify procedures for denying erroneous exemptions and distinguishes between denials due to owner error versus assessor/local unit error.

• If exemption denial is due to owner error, corrected or supplemental tax bills with interest (1.25% per month) and penalties are issued; if denial is not due to owner error, no tax bill is issued and unpaid taxes cannot become a lien on the property.

• Establishes that the Department of Treasury must state whether denial reason is due to owner error in denial notices, allowing different consequences based on who caused the error.

• Creates procedures for conditional rescission of exemptions on foreclosed properties held by banks/lenders and properties held for sale, allowing up to 3 years of exemption retention if property remains unoccupied and not leased.

• Provides that owners must annually verify property conditions for conditional rescissions and establishes penalty of $5 per day (maximum $200) for failure to file required rescission forms within 90 days.