Ways & Means reviews replacing education property tax credit with homestead exemption

John Grama, Office of Legislative Council, briefed the Ways & Means Committee Friday on the tax portion of the Governor’s Education Transformation Plan, which would repeal the existing education property tax credit (PTC) and create a homestead property tax exemption determined on the household’s house site value.

Grama said the exemption is “intended to reduce property tax liability for households with low and moderate household income,” and described how the proposal replaces the statewide education PTC while preserving the municipal property tax credit and the renter credit.

The proposal would determine the exemption using house site value (the dwelling plus up to two acres for a single‑unit home, or up to 10 acres for a multi‑unit dwelling) rather than the broader parcel homestead value. Under the draft language Grama walked the committee through, claimants who qualify would receive tiered exemptions based on household income and, for two lowest tiers, an age threshold. For example, claimants age 65 or older with household income at or below $47,000 would be eligible for a 70% exemption of house site value (capped at $200,000…