S.B. No. 273 Summary

• Reduces property taxes on owner-occupied homes (longtime homesteads) when annual tax increases exceed 10%, effective for tax year 2021 and later.

• Creates new property tax reduction and deferral program for longtime homesteads in eligible areas designated by local governing bodies, with optional income or age requirements.

• Prohibits political subdivisions (counties, municipalities, water districts) from placing liens on property for unpaid water charges, removing water debt from the real property tax list.

• Allows surviving spouses to continue tax deferrals under certain conditions, and deferred taxes do not accrue interest or penalties unless unpaid when due.

• Modifies existing homestead tax exemption provisions and repeals conflicting sections of prior law while preserving liens certified before the effective date.