Homeowners would need a reduced homestead rate for property tax relief

A home would need to qualify for the reduced homestead tax rate to qualify for this relief. This covers main homes with a market value below $1 million. The homestead rate is a reduced property tax rate for a main home. The homestead program's application, limit, appeal, and penalty rules would also apply. Tax credits would depend on the relief account having more than $50 million at the end of the fiscal year. If passed and approved, the act would take effect immediately and apply retroactively to property tax years beginning after December 31, 2026.

The Department of Revenue would assess the penalty against the person who filed the false or fraudulent application. This covers false or fraudulent applications for reduced homestead or rental property tax rates, including when the applicant no longer owns the property. The base amount would include underpaid property taxes plus principal residence tax relief received. Interest would run from the original tax due date until payment. If passed and approved, the act would take effect immediately and apply retroactively to property tax years beginning after December 31, 2026.