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Bill would let homeowners holding residences in LLCs, trusts claim property tax rebate
Summary
House Bill 874 would allow owners whose primary residence is titled in an entity — such as an LLC or trust — to claim the property tax rebate enacted last session; the Department of Revenue said administration will require form and technology changes and a fiscal note is pending.
Lawmakers heard nearly three hours of testimony and questions on House Bill 874, which would extend the state’s property tax rebate to homeowners whose residences are owned by an entity such as an LLC, trust or other legal owner types.
Sponsor Representative Greg Schillinger explained that the bill is intended to include “hardworking or retired individuals” who were excluded from the prior rebate because title to their home was held in an entity. "...they are just as deserving and should be given the opportunity," the sponsor said.
The bill text circulated and an amendment summary read by committee staff clarify eligibility and application procedures. The draft expands the rebate to single-family dwellings, units in multiunit buildings, manufactured homes and up to one acre of surrounding land when those properties are owned by an entity and were not issued a rebate under the prior statutory section cited in testimony (15-1-2304). The amendment also clarifies that a person who already received a rebate before the effective date may not receive a second rebate under the new provision.
Derek Bell, division administrator for the Department of Revenue’s business and income tax division, appeared as an informational witness and told the committee that the department will need time to design validation and application processes. "We have not had a full opportunity to really think through the validation process," Bell said, noting cross-matching against county property tax records, income tax records and Secretary of State entity records could be tools to verify claimants.
Committee members asked whether irrevocable trusts would qualify, how an LLC with multiple members would be treated if several members lived in separate units of a multiunit property, and how the department would verify that an individual living in a property owned by an entity meets residency rules. Department staff said their interpretation of current bill language would allow some irrevocable trusts to qualify but that administrative details and a full fiscal estimate are still pending.
Lawmakers noted the bill’s electronic claim deadline language and the statutory claim deadline in the draft: the transcript cites a deadline to submit a claim by October 1, 2025, for eligible properties. Committee members repeatedly requested a fiscal note and technical clarifications before any further action.
The hearing closed without committee action; sponsors and the department said staff would return with fiscal and technical information.
