HF3305 Summary

• Reinstates the residential homestead market value credit under section 273.1384, replacing the previous homestead market value exclusion that is repealed effective for taxes payable in 2015 and thereafter.

• Establishes a new homestead credit equal to 0.4 percent of the first $76,000 of market value minus 0.09 percent of market value exceeding $76,000 for class 1a, 1b, and 2a homestead properties.

• Removes references to the homestead market value exclusion from market value definitions and calculations while maintaining other property tax exclusions and credits for agricultural properties, disabled veterans, and other special categories.

• Modifies tax increment financing rules to include residential homestead market value credits paid to tax increment financing districts as part of tax increment revenues effective for taxes payable in 2015.

• Changes property tax statements to remove the line item for homestead market value exclusion and consolidates homestead credit information, with all changes effective for taxes payable in 2015 and thereafter.