SF 271 Summary

• Increases the maximum homestead property tax refund from $3,560 to $3,560 (maintains current amount) and expands eligibility by raising the income threshold from $113,150 to $155,001 for households to qualify for refunds.

• Expands the exemption amount for claimants with a disability or age 65 or older from 1.5 times the exemption amount to provide additional income deductions when calculating property tax refund eligibility.

• Updates income definition under the property tax refund program to clarify treatment of retirement account distributions, passive activity losses, and various types of nontaxable income for purposes of determining refund eligibility.

• Changes the statutory base year for inflation adjustments to income thresholds and maximum refunds from 2022 to 2023, allowing future annual adjustments to better reflect changes in cost of living.

• Effective dates: income definition changes apply to rent paid in 2023 and property taxes payable in 2024; refund amount and income threshold changes apply to property taxes payable in 2024 and beyond.