HB 1882 -- Property Tax:  Homestead Deferment

Sponsor:  Campbell

This bill allows residential real property owners to defer any
increases in real property taxation on their principal residence
until the next subsequent sale or transfer.

Owners who elect the option of deferral must file a deferment
request with the county clerk and must grant a lien on the
residential property in favor of the state.

The county clerk of each county will estimate each year the lost
revenue of the county and its political subdivisions resulting
from real property tax deferment.  The clerk will then forward
the estimate along with the deferment request to the Department
of Revenue.  The Department of Revenue will notify the State
Treasurer and General Assembly of the total amount of state loss
from real property tax deferment.

Upon sufficient appropriation into the Property Tax Deferral
Fund, created in the bill, the Department of Revenue will
reimburse to each county the pro-rata share of the loss from
real property tax deferral.

The Department of Revenue will recoup the amount of deferment
for the owner through reimbursement by the owner or by execution
of the lien at the next sale or transfer of the property.

The bill will become effective January 1, 2002.