HF 542 Bill Summary

• Establishes a senior citizens' property tax credit for homeowners age 65 and older (or 62+ if married to someone 65+) who are retired at normal retirement age, applicable to class 1a, 1b, and portions of class 2a residential properties.

• Credit amount equals the difference between net tax on the property's actual market value and net tax on the median market value of owner-occupied housing in the applicant's municipality, with a maximum credit amount to be determined.

• Applicants must file applications with county auditors by July 1 of the assessment year to be effective for taxes payable in the following year; approved applicants may claim the credit in subsequent years until they no longer own the property or qualify.

• County auditors certify tax reductions to the Commissioner of Revenue, who reimburses all taxing jurisdictions except school districts in two equal installments (October 31 and December 26); school district reimbursements are paid by the Commissioner of Education.

• General fund appropriations are made annually to the Commissioner of Revenue and Commissioner of Education to fund reimbursements; credit is added to the property tax credit computation order and effective for taxes payable in 2023.