Subcommittee reviews optional local property tax credit to support Habitat for Humanity homes

The Local Revenue Subcommittee of the Ways and Means Committee met Tuesday to review a bill authorizing an optional local property tax credit aimed at supporting affordable homes built by Habitat for Humanity.

Stan, a legislative staff member who gave the bill synopsis, said the proposal would allow a county to offer a credit equal to the difference between a home's assessed market value and the lower payment the homeowner owes under a below-market first mortgage. "This would just allow the local government to offer a credit for the difference between the assessed value and what the homeowner is actually paying," Stan said, explaining the assessment itself would not change.

Chair Robertson framed the session as discussion-only, noting the subcommittee would not vote at this first meeting. Delegate Solomon, who the chair identified as the bill sponsor, said he was grateful to Stan for his work drafting the measure and declined further comment while inviting questions.

Committee members sought clarification about mechanics. One member asked whether the tax assessment would be reduced when the home was occupied; Stan replied it would not, reiterating that the bill authorizes a credit rather than an assessment change. The exchange focused on how the credit would be applied while a silent second mortgage is in place and how that interacts with tax liability.

No formal action was taken. Chair Robertson said the committee would circulate any drafted amendment language and return to the item in a later meeting if needed.