Q: Can you give an update on bills passed in the recently concluded legislative session?
A: There are a number of bills that were passed by both legislative houses and are on their way to the governor for his signature. They are:
HB 1161 pertains to verification of eligibility for homestead exemption that applies to totally and permanently disabled veterans. Currently, when purchasing a home using a mortgage, the mortgage company would not recognize this exemption until the following year and would therefore require escrow. Now, the Property Appraiser’s office will give a preapproval for the exemption so that the mortgage company will not escrow funds the initial year.
HB 103 relates to certain property owners whose addresses are considered “protected and confidential,” such as police officers, judges and victims of domestic violence. This bill expands the list to include city and county attorneys.
HB 7073 is a tax package that is basically a catchall for items that didn’t make it into other bills. Relevant for us are a couple of items: currently, if you improperly claim homestead exemption, you will be liable for unpaid taxes as well as penalties and interest. This bill is a kind of amnesty in that if you improperly claim homestead exemption, but you let the Property Appraiser know about it before they discover it, you are not liable for any of those things (unpaid taxes or penalties or interest). Another item involves the period of time that a homeowner has to start rebuilding their homestead that has been damaged or uninhabitable as the result of a natural disaster. The time to begin rebuilding will be increased from three years to five for the homeowner to maintain homestead exemption and caps.
Q: Are there any bills that passed that will be on the ballot in November?
A: Yes, HB 7017, since it pertains to homestead exemption, which is constitutional, must be voted on by citizens and requires 66.66 percent approval to pass. This bill proposes an annual inflation adjustment to the homestead exemption. Specifically, the second $25,000 band of homestead exemption for homes over $50,000 will be adjusted annually with the Consumer Price Index. The effect is that would raise the amount of that $25,000 of the exemption by the amount of the Consumer Price Index (CPI); so, for example if the CPI is 3 percent, then this $25,000 exemption band would be $25,750. If passed by voters, this would go into effect on Jan. 1, 2025.
With all of these changes, I’d encourage homeowners to call our office if they have any questions.
Q: What is the best way for our readers to contact you?
A: Our office is located at 4030 Lewis Speedway Ste. 203, (904) 827-5500. It is open Monday – Friday, 8:30 a.m. – 5 p.m. Also, readers can email me at Eddie@sjcpa.us or call me at (904) 827-5500.
