Homeowners’ tax credits would leave out taxes for older debt

The supplemental home tax credit calculation would leave out specified taxes used for bond and lease payments. It covers homeowners who get the standard main home tax deduction and surviving spouses married to a qualifying homeowner at death. The original bonds or leases must predate 2026. Refunding bonds cannot mature later than the originals. Amended leases cannot last longer, and other covered leases must end by the old bonds’ maturity. It applies to property taxes first due and payable in 2026 or later.

Local officials would need an ordinance to keep or adjust these income tax rates. It covers county income tax rates for local spending and rates imposed by cities or towns that qualify to levy their own local income tax. Officials would need an ordinance even if a rate stays the same. These sections would take effect July 1, 2027. The first expiration would be December 31, 2029.