Editor’s note: This is the second part of a series on property tax reform. To read Rep. Bankson’s first column, click here. 

In keeping with our Star Wars theme, there is a “New Hope” on the horizon regarding homestead property tax. However, it diverges into two schools of thought. 

The first approach supports the model of maintaining taxes for certain essential services such as schools and first responders. Preferred by local governments, this method still taxes homeowners for essential services and thus does not truly eliminate homestead taxes.  

The alternate approach is a true homestead tax relief that completely eliminates ad valorem on a primary homestead, removing the risk of losing one’s home due to unpaid taxes. Preferred by many homeowners, this model will make up the revenue through various means, from increased state sales tax to fees for essential services. 

As promised in my last column, here is a brief synopsis of the options presently working their way through the process: 

• HJR 201 proposes exempting all homestead properties from non-school property tax levies. This proposal effectively removes all ad valorem taxes except school property taxes. 

• HJR 203 proposes phasing in exemption of all homestead properties from all non-school property taxes by adding an additional$100,000 exemption each year for 10 years with total elimination beginning in year 11. 

• HJR 205 proposes exempting all homestead properties from non-school property tax levies for homesteaders who are aged 65 and older. 

• HJR 207 proposes creating a new non-school homestead exemption on top of existing exemptions, equal to 25% of the remaining assessed value after existing exemptions apply. 

• HJR 209 proposes increasing the non-school homestead exemption to the assessed value of $25,000-$250,000 for homesteaders that hold a multiperil insurance policy. 

• HJR 211 proposes removing the existing $500,0000 portability cap and removing the requirement that a portability amount be reduced if the homestead owner downsizes. 

• HJR 213 proposes changing the existing limitation on assessment, increasing to 3% for a homestead and 15% for non-homesteads once over a three-year period, applying to non-school levies only. 

• House Bill (HB) 215 proposes authorizing married couples to combine their separate Save Our Homes portability benefits when establishing a joint homestead, up to the existing $500,000 cap. 

All these proposals follow the first approach in that they reduce but do not fully eliminate property taxes.   

On the other side of the coin, state Rep. Ryan Chamberlin has proposed three measures that will in tandem work to remove property tax for homesteads:  

• HB 789 Removal of county and school ad valorem taxes  

• HB 791 Increasing specified sales and use tax 

• HJR 787 Proposing amendments to state constitution removing taxing authority from counties and school districts.   

Together, these combine to accomplish the goal of eliminating homestead property taxes altogether.  

Next time, we’ll discuss how to make your voice heard.