Committee hears plan to replace statewide property tax credit with income‑based homestead exemption

Committee staff reviewed the bill section that would repeal the statewide property tax credit and replace it with a homestead property tax exemption computed by household income.

Structure and purpose

Under the proposal the statewide PTC would be repealed and municipal credits retained; a new homestead exemption would reduce the taxable house‑site value subject to the statewide education tax and the supplemental district spending tax. The statutory purpose language attached to the exemption states the intent to reduce property tax liability for low‑ and moderate‑income households.

Income‑sensitive exemption schedule and limits

The exemption schedule in the draft would provide graduated reductions in house‑site value across multiple income brackets. As outlined in committee, a claimant with household income equal to or less than $25,000 would…