HF3276 Bill Summary

• Consolidates residential property classifications into a single Class 1 structure effective for taxes payable in 2019, replacing the previous multi-tiered residential classification system (Class 1a, 1b, 1c, 1d).

• Modifies Class 1 property tax rates: first $500,000 of market value taxed at 1% with amount exceeding $500,000 taxed at 1.25%; maintains lower rates for agricultural homesteads and other qualifying properties.

• Eliminates the state general levy on seasonal residential recreational property ($44.19 million levy removed) while maintaining the state general levy on commercial-industrial property.

• Replaces the Class 1b blind and disabled homestead classification with a refund payment program providing eligible homeowners up to $400 in property tax relief (0.8% of taxable market value).

• Implements transition provisions and refunds for properties affected by classification changes, including special one-time refund for certain lodging properties in 2019.