PRINCIPAL RESIDENCE EXEMPTIONS:

BED & BREAKFASTS

House Bill 6030

Sponsor:  Rep. Howard Walker

Committee:  Tax Policy

Complete to 9-19-06

A SUMMARY OF HOUSE BILL 6030 AS INTRODUCED 5-3-06

The bill would amend the General Property Tax to specify that the principal residence exemption for property used as a bed and breakfast would be apportioned, generally speaking, based on the amount of property used "regularly and exclusively" as a bed and breakfast, according to the following equation where,

·                     A is the square footage of property used regularly and exclusively as a bed and breakfast (not including common areas).

·                     B is the square footage of property used as the property owner's principal residence.

·                     C is the square footage of the property not used regularly and exclusively as a bed and breakfast (including common areas).

·                     D is the total square footage of the property. 

Common areas would include, but would not be limited to, a kitchen, porch, hallway, driveway, or bathroom. 

FISCAL IMPACT:

Because the number of taxpayers that will take advantage of this provision, the taxable values of their homesteads, and the percentages to be exempted are not known, a precise estimate is not possible.

 

The bill would have no direct impact on state revenues; the reduction would be entirely at the local level and would reduce funding for schools. The School Aid Fund would then have to offset this loss through the foundation allowance.

                                                                                           Legislative Analyst:   Mark Wolf

                                                                                                   Fiscal Analyst:   Jim Stansell

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.