Committee reviews elderly homeowner and renter tax credit; members ask staff to model options from previously vetoed bill

Legislative staff presented the committee with a statutory review of the elderly homeowner and renter credit, an income-based refundable tax credit for property taxes or rent-equivalent taxes. Meghan Moore walked members through the multi-step calculation: determine gross household income (including nontaxable income), subtract the statutory household exclusion ($12,600 as of the 2021 change) to get household income, apply a statutory reduction percentage, and then apply a phase-down for gross household incomes between $35,000 and $45,000. The current statutory maximum credit is $11.50.

Moore noted administrative complexity: the broad gross-household income definition requires DOR to verify nontaxable income for all household members, increasing staff time and appeals. She reviewed legislative history: the credit dates to 1981, was modified several times in the 1980s–1990s, and in 2021 the household exclusion doubled and the maximum credit increased.

Public commenters and committee members urged options to expand relief and indexed ceilings. Moore reported the fiscal note for House Bill 831 (a recent, vetoed bill that would have increased the exclusion and maximum credit) at roughly $3.7 million per year. Committee members asked staff to model: (a) updating HB 831 numbers to 2027 dollars, (b) indexing ceilings for inflation, (c) the effect of increasing the claimant age from 62 to 65, and (d) a broader circuit-breaker option or separate program for "land-rich, cash-poor" households. No formal continuance or repeal action was taken at the meeting; Representative Thane made a motion to continue the credit and consider amendments but later withdrew the motion while the committee sought further information.