HB 5197 Summary

• Changes homestead property tax credit eligibility from complete disqualification to a reduced credit for owners whose homestead taxable value exceeds $135,000, effective through the 2021 tax year.

• Establishes a phaseout structure reducing the credit by 10% for each $2,000 increment of taxable value exceeding the cap, beginning in the 2018 tax year.

• Adjusts the taxable value cap and minimum household resources thresholds annually beginning in 2021 based on the U.S. consumer price index, rounded to the nearest $100.

• Increases the maximum total property tax credit from $1,200 to $1,500 per year for the 2018 tax year and beyond, with annual CPI adjustments starting in 2021.

• Modifies credit reduction calculations starting in 2018 to allow claimants to receive whichever is greater between the household resources-based reduction or the taxable value-based reduction.