HB 941

UPPER LIMIT Present law requires that certain low-income taxpayers , 65 or older , are paid from the general funds to reimburse such taxpayers for all or part of the local property taxes paid for the taxpayer's residence. For this purpose, the taxpayer's annual income from all sources must not exceed $24,000 . Such reimbursement must be paid on the first $27,000, or such other amount as set forth in the general appropriations act or as adjusted to reflect inflation after 2018 , of the full market value of such property. This bill revises th ese provisions so that r eimbursement must be paid on the assessed value of the property , as defined below. However, the reimbursement must not be paid if the assessed value of the property exceeds $400,000, or such other amount as set forth in the general appropriations act or as adjusted for inflation, in the first year tax relief for the property is claimed by the taxpayer. If the assessed value of the property of a taxpayer who received this tax relief in the previous year exceeds the upper limit set o r adjusted in the subsequent year, then reimbursement must be paid on the upper limit. INFLATION ASSESSMENT Present law requires the amount on which reimbursement is paid to be increased annually to reflect inflation, as measured by the United States b ureau of labor statistics consumer price index for all urban consumers , rounded to the nearest $100. This bill revises this provision so that, instead, b eginning with tax year 2027, the upper limit on the assessed value must be increased annually to refle ct inflation, as measured by the United States bureau of labor statistics consumer price index for all urban consumers, and rounded to the nearest $100. REIMBURSEMENT In determining the amount of relief to a taxpayer, present law provides that the eff ective assessed value on the first $27,000, or such other amount as set forth in the general appropriations act or as adjusted for inflation, of full market value must be multiplied by a tax rate that has been adjusted to reflect the relationship between a ppraised value and market value in that jurisdiction, as determined by the state board of equalization. This bill revises this provision to provide, instead, that the r eimbursement is based on the taxpayer's age and must be calculated as a percentage of t he property tax owed and paid on the assessed value . The assessed value must be multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction, as determined by the state board of equalization. ASSESSED VALUE Present law requires t he effective assessed value to be determined by multiplying the full market value of the property up to $27,000, or such other amount as set forth in the general appropriations act or as adjusted for inflation, by 25%. This bill removes this provision and requires, instead, that t he assessed value is determined by multiplying the full market value of the property by 25%. T he amount of property tax relief available to a taxpayer is as follows:  If the taxpayer is 65, then the reimbursement is 10% of the property tax paid .  Each additional year results in an additional 10 % of property tax reimbursement .  If the taxpayer is 74 or older, then the reimbursement is 100% of the property tax paid.