Amends TCA Title 67, Chapter 5, Part 7.

Under present law, there is paid from the general funds of the state to certain low-income taxpayers 65 years of age or older an amount necessary to pay or reimburse such taxpayers for all or part of the local property taxes paid for a given year on that property the taxpayer owned and used as the taxpayer's residence. <br /> <br /> In order to qualify for such tax relief, the taxpayer's annual income from all sources must not exceed $24,000, or such other amount set forth in the general appropriations act. However, this limit is adjusted each year to reflect the cost of living adjustment for social security recipients as determined by the social security administration and must be rounded to the nearest $10. The income attributable to the applicant must be the income of all owners of the property, the income of the applicant's spouse, and the income of any owner of a remainder or reversion in the property if the property constituted the person's legal residence during the year for which the tax relief is claimed. Any portion of social security income, social security equivalent railroad retirement benefits, and veterans entitlements required to be paid to a nursing home for nursing home care by federal regulations are not considered income to an owner who relocates to a nursing home. <br /> <br /> Present law requires that reimbursement be paid on the first $27,000, or such other amount set forth in the general appropriations act, of the full market value of such property. However, the amount on which reimbursement must be paid is increased annually to reflect inflation.<br /> <br /> In determining the amount of relief to a taxpayer, the effective assessed value on the first $27,000 of full market value is multiplied by a tax rate that has been adjusted to reflect the relationship between appraised value and market value in that jurisdiction. The effective assessed value of the property is determined by multiplying the full market value of the property up to $27,000 by 25 percent. The full market value of the property is determined by adjusting the appraised value of the property as shown on the records of the assessor of the property by a factor that reflects the relationship between appraised value and market value, as determined by the state board of equalization. <br /> <br /> This bill changes references of $27,000 in the provisions above to $50,000, increasing the maximum market value on which property tax relief is calculated for such taxpayers.<br /> <br /> This bill applies to tax years beginning on or after July 1, 2023.<br /> <br /> ON APRIL 21, 2023, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 254, AS AMENDED.<br /> <br /> AMENDMENT #1 revises the above provisions by lowering $50,000 to $40,000; applies this bill to disabled homeowners as well as elderly, low-income homeowners; and delays annual increases to reflect inflation until tax year 2025.<br />