HB 3712
Changes the metrics for a homestead's real market value and the household income of a claimant in order to expand eligibility for the homestead property tax deferral program.
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Sign in to take actionPublic sentiment
Support
92%
Oppose
8%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill changes the requirements for Oregon’s homestead property tax deferral program to make it more accessible. It adjusts the income and property value thresholds used to determine eligibility, increasing the maximum household income to $80,000 and updating the real market value calculations based on the Consumer Price Index. The bill also directs the Legislative Revenue Officer to study the use of equity versus income in determining program eligibility and report their findings.
Key provisions
- Increases the maximum household income eligible for deferral to $80,000.
- Recomputes the maximum household income annually using the Consumer Price Index.
- Updates the real market value thresholds for eligibility based on years of ownership and county median RMV.
- Requires the Legislative Revenue Officer to assess the use of equity versus income in determining program eligibility.
- Allows claims from individuals with disabilities regardless of age.
- Provides for claims by trustees of certain trusts.
- Specifies that a claim cannot be filed if property taxes are delinquent or canceled.
- Establishes a delayed effective date for the changes.
Who is affected
- Homeowners in Oregon
- Senior citizens
- Individuals with disabilities
- Taxpayers
- Oregon residents
Notable changes
- The income threshold for deferral has been increased from $32,000 to $80,000.
Sponsors
Official sponsors from legislative records.
Primary sponsors
E. Werner Reschke
Cosponsors
Arguments in favor
Reasons to support this legislation.
Testimony from supporters of the property tax deferral program highlights its potential to help seniors and disabled homeowners stay in their homes, addressing affordability concerns and allowing them to delay paying property taxes. The program's eligibility criteria, including income and asset limitations, as well as varying interest rates and property value restrictions, are noted. Supporters also emphasize the program's benefits, such as enabling individuals to remain in Oregon despite increasing taxes or financial constraints. However, some testifiers caution that low participation rates and high denial rates, with 955 denials out of 761 applications submitted, may indicate challenges in implementing the program effectively.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of HB 3712 A argue that the bill is discriminatory due to its targeted benefits, which primarily favor individuals with high property and income net worth. They contend that this exclusionary approach unfairly penalizes lower-income individuals who may be more likely to invest in their communities through other means. Proponents of this argument point out that the bill's eligibility criteria disproportionately affect marginalized groups, such as low- and moderate-income households, who are already struggling to access affordable housing options.
Source: Testimony Summaries