Bill > S1512

This bill creates a new property tax exemption and assessment method for residential properties that are subject to long-term leases. Specifically, property owners who have a homestead exemption on another property can receive a tax exemption of up to $25,000 for a separate residential property they own and lease out, provided the lease is for 6 months or more and meets certain other conditions. The bill introduces a unique assessment method that limits annual increases in the property's assessed value to either 3% or the change in the Consumer Price Index, whichever is lower. When the property experiences changes like damage or improvements, it will be assessed at just value, with some exceptions for rebuilding after damage. Property owners must apply annually for this exemption by March 1, providing details about their existing homestead and the lease for the rental property. The bill also specifies that if the property no longer meets the eligibility requirements, it will be reassessed using standard methods. The implementation of this bill is contingent on the approval of a related constitutional amendment at the next general election.