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Sponsor proposes broad primary-residence credit covering trusts, co-owners for 2024 relief
Summary
Senate Bill 2298 would enact a broad-based homestead/primary-residence credit (including trusts, corporations and contracts for deed) and create a taxable-valuation reduction equivalent to $200,000 true-and-full value for 2025 onward; sponsor requested due-pass consideration and the committee closed the hearing without action.
Senator Tim Mathern introduced Senate Bill 2298 to create a broad-based primary-residence tax credit that would apply to all homeowners who occupy a property as their primary residence, without age or income limits. “This bill is a broad based homestead tax credit without any age, income, or status restrictions,” Mathern told the Senate Finance and Taxation Committee.
The bill would make trusts, corporations, life estates and contracts for deed eligible for the primary-residence credit and would allow co-owners to receive partial credits based on ownership interest. For tax year 2024 the bill includes a retroactive “trust fix” to allow primary-residence credits where trusts previously were excluded; the sponsor said that part of the bill is time-limited and would expire after a transition period (Section 6 language as presented would apply to tax year 2024 and include an expiration tied to December 31, 2026 so owners can apply retroactively).
Beginning in tax year 2025, Section 8 of the bill would create a taxable-valuation reduction for primary residences equal to 100% of taxable valuation up to a maximum reduction of $9,000 in taxable valuation (the sponsor said that is roughly equivalent to $200,000 in true-and-full value). The bill also contains state-reimbursement provisions and cross-reference cleanups, and would repeal the existing homestead tax credit and disabled-veterans provisions to simplify the statutory structure.
Mathern told the committee the measure would make property-tax relief visible to every homeowner and that state funding is available to support the change. He said the bill aimed to address rapid increases in household tax obligations tied to rising valuations and to consolidate multiple relief mechanisms into a single, broadly available form of relief.
No members of the public testified in favor, opposition or neutral on the record; Mathern asked for a due-pass recommendation and the committee closed the hearing. Members said they plan to compile and compare all property-tax proposals before taking action.
