Senate bill to extend $500 primary-residence credit to homes held in trust draws questions on retroactivity and administration

Senator Mark Weber, sponsor of Senate Bill 2201, told the Senate Finance and Taxation Committee the bill is meant to correct an oversight and make owners of primary residences held in trusts eligible for the $500 primary-residence credit.

"Basically, Senate Bill 2,201 is basically a fix it bill," said Senator Mark Weber, District 22, introducing the measure and saying the change would allow owners of primary residences held in trust to claim the credit for 2024 and 2025 and include an emergency clause so people could apply immediately.

The bill’s sponsor said the oversight affected about 4,000 homes. "In checking with the state tax commissioner, he estimated that about 4,000 homes were not eligible because of this little glitch," Weber said.

Why it matters

Supporters said the measure restores the original intent of the primary-residence credit so primary homeowners — including those who hold their homes in a trust for estate planning — receive the $500 benefit. That relief is designed to reduce owners’ property-tax bills for the tax years specified in the bill.

What su…