H.B. No. 447 Summary

• Modifies and expands property tax homestead exemptions for seniors (65+), permanently and totally disabled individuals, disabled veterans, and surviving spouses/children of fallen public service officers and military service members.

• Gradually reduces school districts' 20-mill floor requirement, transitioning from twenty mills to a variable floor millage tied to inflation adjustments and consumer price index starting in tax year 2023.

• Enhances homestead and manufactured/mobile home tax reduction amounts during tax years 2023-2025 through "maximum value reduction" and "enhanced maximum value reduction" provisions, with income-based phase-outs for higher earners.

• Modifies the farmland current agricultural use value calculation method to use a 25-year holding period assumption and updated capitalization rate requirements based on equity yield rates and loan interest rates.

• Establishes transition provisions allowing late applications for tax years 2023-2024 and special distribution rules for school districts during calendar years 2024-2026 to manage the fiscal impact of expanded exemptions.