Bill description: SB 1416 would increase the maximum homestead exemption from $100,00 to $120,000 for tax year 2020. Beginning in the 2021 tax year, the exemption would be indexed annually to reflect cost-of-living fluctuations.
Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
SB 1416 would reduce the property taxes paid by homeowners whose home values exceeded $200,000, capping the benefit increase for the exemption at homes valued at $240,000.
SB 1416 would lead to rental rate increases because rental properties, especially those commercially owned, would not be subject to the increased homeowners exemption. So, as the overall taxable market value in a taxing district decreases, and that district’s levy rate remains the same or increases, the tax burden would be pushed onto rental properties. And those tax increases would be passed onto the renter.
Does it increase government redistribution of wealth?
SB 1416 would increase property taxes for homeowners whose values were under $200,000, as well as owners of commercial businesses, and farm property. This would happen, assuming that the budget supported by the tax does not go down, because the bill would reduce taxes on single-family homes, and the loss of tax revenue would have to be made up by other types of property.
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