EXEMPTION FOR HOUSING

FOR THE ELDERLY OR DISABLED

House Bill 4618

Sponsor:  Rep. Margaret O'Brien

Committee:  Tax Policy

Complete to 1-24-12

A SUMMARY OF HOUSE BILL 4618 AS INTRODUCED 5-5-11

The General Property Tax Act contains a tax exemption for nonprofit housing for the elderly or disabled.  The exemption is granted by the local assessor.  There is a process in the act by which the state government makes a payment in lieu of taxes to a local unit for revenue lost due to the exemption, except for state and local school operating taxes.

House Bill 4618 would allow the Department of Treasury to grant this property tax exemption for the current year and the three immediately preceding years for property that would have qualified for the exemption if the owner had filed the required form in a timely manner.  If granting the exemption results in an overpayment of the tax, a rebate would be made to the taxpayer by the local tax collecting unit or the county treasurer, depending on which office has possession of the tax roll.  The rebate would have to be paid within 30 days after the exemption was granted.  The rebate would be without interest.

FISCAL IMPACT:

Because the number of affected properties, the respective taxable values, and the corresponding millage rates are not known, a fiscal impact cannot be determined.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  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.