Damascus tax exemption would depend on local sales tax proceeds

The measure would exempt part of eligible homes’ value from Damascus city property taxes. It would cover a resident’s homestead property in the special district that matches Early County, and apply only to Damascus city taxes. The exempt amount would be based on net proceeds from the local sales tax collected in the district. The exemption would be added to any other homestead exemption. Property value above the exempt amount would remain taxable. If approved by voters and the other requirements are met, the exemption would apply to tax years beginning January 1, 2027, through December 31, 2039.

The city election superintendent would hold a vote on whether to approve the measure. City voters who live within the Early County special district would decide whether to approve the measure. The measure would take effect only if more than half of votes cast approve it and it receives the required two-thirds vote in both legislative chambers. If voters reject it or the election is not held as required, it would not take effect and would be repealed 365 days after the scheduled election date. The election is set for the Tuesday after the first Monday in November 2026. If approved and the other requirements are met, the exemption would begin January 1, 2027.

Applicants would file for the exemption with the city tax official. The rules would apply to residents seeking the measure’s exemption for a homestead in the special district. People already approved for another Damascus city homestead exemption for the prior year, and still eligible for that same property, would not need to apply again for the initial exemption. After approval, the exemption would renew each year while the person lives in the home and remains eligible. Recipients must notify the tax official if they become ineligible. Once granted, the exemption would renew each year while the homeowner lives in the home and remains eligible.