Bill > SB1044

This bill amends the Income Tax Act of 1967 to modify the definition of "homestead" for property tax credit purposes. It clarifies that "gross rent" is the total rent paid in an arm's-length transaction, allowing the department to adjust excessive rent if the landlord and tenant did not deal at arm's length. The definition of "homestead" is expanded to include a dwelling or unit subject to property taxes or a service charge in lieu of taxes, occupied as a home by the owner or as a dwelling by a renter or lessee, along with unoccupied real property not classified as commercial, industrial, or timber-cut over. It specifies that unoccupied real property leased or rented to another person and not adjacent to the owner's home is not considered a homestead. The bill also clarifies how property taxes are allocated for homesteads that are part of larger assessment units, and it defines how agricultural or horticultural lands are considered part of a homestead based on the claimant's length of residency and the gross receipts from operations. Additionally, it states that a mobile home or trailer coach in a trailer park is a homestead, and the site rent is considered homestead rent, with the specific tax levied on these being treated as a property tax. Finally, it updates the definition of "total household resources" by removing a specific exclusion for compensation received under the wrongful imprisonment compensation act for tax years after December 31, 2018, and clarifies how net business losses, rental or royalty losses, and net operating loss carrybacks or carryforwards are treated.