Legislative Updates
By Staci Hardy, VP Internal Audit & QC Manager
LERETA’s compliance team regularly monitors and tracks statewide property tax legislation that impacts tax service for our customers. This quarter we are including details on introduced legislation and the progression of seven new bills that we are following. None of these will have any impact to LERETA’s processes at this time, but they are beneficial to review.
This legislative update is provided by LERETA as a service to its customers. It should not be construed as legal advice or legal opinion. The contents are intended for general informational purposes only, and you are urged to consult your own attorney regarding the law and specific legal questions you have. LERETA does not guarantee the accuracy, reliability or timeliness of the information contained in its legislative updates.
Newly Monitored Bills
California
Name: CA HB 710 Property Taxation: Active solar energy systems
Introduced: 9/11/25
Status: 75% progression
Summary
Pursuant to constitutional authorization, existing property tax law excludes from the definition of “newly constructed” for these purposes the construction or addition of any active solar energy system, as defined, through the 2025–26 fiscal year. Under existing property tax law, this exclusion remains in effect only until there is a
Pursuant to constitutional authorization, existing property tax law excludes from the definition of “newly constructed” for these purposes the construction or addition of any active solar energy system, as defined, through the 2025–26 fiscal year. Under existing property tax law, this exclusion remains in effect only until there is a subsequent change in ownership, but an active solar energy system that qualifies for the exclusion before January 1, 2027, continues to receive the exclusion until there is a subsequent change in ownership. Existing law repeals these exclusion provisions on January 1, 2027. This bill would make a technical change to the existing active solar energy system exclusion by instead making the repeal date of January 1, 2027, the date the exclusion becomes inoperative. This bill would incorporate additional changes to Section 73 of the Revenue and Taxation Code proposed by AB 1516 to be operative only if this bill and AB 1516 are enacted and this bill is enacted last.
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Illionois
Name: IL 4134
Introduced: 9/19/25
Status: 25% progression
Summary
Amends the Property Tax Code. Provides that, beginning with taxable year 2026, the amount of the homestead exemption for persons with disabilities shall be the greater of (i) $2,000 or (ii) an amount that, when deducted from the property’s value as equalized or assessed by the Department of Revenue, will cause the total aggregate property tax liability for the property for the taxable year for which the exemption is claimed to equal a specified base amount. Effective immediately.
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Name: IL SB 1978
Introduced: 2/6/25
Status: 25% progression
Summary
Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant’s tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately.
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Name: IL HB 2452
Introduced: 2/3/25
Status: 25% progression
Summary
Amends the Property Tax Code. Provides that, for taxable years 2026 and thereafter, the maximum reduction under the senior citizens homestead exemption is $8,000 in all counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and counties that are contiguous to a county of 3,000,000 or more inhabitants and $5,000 in all other counties). Provides that the maximum income limitation for the senior citizens assessment freeze homestead exemption is $75,000 (currently, $65,000). Effective immediately.
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Name: IL HB 3724
Introduced: 2/27/25
Status: 25% progression
Summary
Amends the Property Tax Code. Provides that, beginning with the 2026 tax year (to be collected in 2027), the total tax bill for property receiving the General Homestead Exemption may not exceed 103% of the total property tax bill for the property for the immediately preceding taxable year. Contains provisions concerning the reallocation of property tax liability.
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Missouri
Name: MO House Joint Resolution 5-8
Introduced: 9/4/25
Status: 25% progression
Summary
Proposes a constitutional amendment modifying the taxation of property
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New York
Name: NY AB 9116
Introduced: 9/26/25
Status: 25% progression
Summary
Relates to the collection of monies owed for unpaid real property tax liens and water and sewer charges; establishes the homeowner protection fund; prohibits municipalities from conveying tax liens on real property to any private entity, trust, or third-party servicer; repeals certain provisions relating to foreclosure of real property tax liens.
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North Carolina
Name: NC HB 118
Introduced: 2/13/25
Status: 25% progression
Summary
Disabled Veterans Tax Relief Bill (a) Classification. – A permanent residence owned and occupied by a qualifying owner is designated a special class of property under Article V, Section 2(2) of the North Carolina Constitution and is taxable in accordance with this section. The first forty-five sixty-one thousand dollars ($45,000) ($61,000) of appraised value of the residence is excluded from taxation. A qualifying owner who receives an exclusion under this section may not receive other property tax relief.
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Ohio
Name: OH House Joint Resolution 6
Introduced: 8/19/25
Status: 25% progression
Summary
Proposing to amend Section 2 of Article XII of the Constitution of the State of Ohio to limit property taxes, whether voted or unvoted, to one and one-quarter per cent or, for certain owner-occupied homes, one per cent of real property’s true value. ______________________________________________________________________________________________________________________________________________________
Texas
Name: TX HB 41
Introduced: 8/15/25
Status: 25% progression
Summary
Relating to the establishment of a limitation on the total amount of ad valorem taxes that certain taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses
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Name: TX HB 201 & 202
Introduced: 8/18/25
Status: 25% progression
Summary
Relating to the exemption from ad valorem taxation of part of the appraised value of the residence homestead of a partially disabled veteran or the surviving spouse of such a veteran based on the disability rating of the veteran. Relating to the exemption from ad valorem taxation of part of the appraised value of the residence homestead of a partially disabled veteran or the surviving spouse of such a veteran based on the disability rating of the veteran
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Recently Passed Bills
California
Name: CA AB 1516
Passed: 7/28/25
Summary
This bill would state a claim filed by an initial purchaser is timely if it is filed within three years of the date of purchase. The bill would also provide that an otherwise valid claim for exclusion filed after the three year deadline would be applied beginning on the lien date for the assessment year in which the claim is filed. The bill would make these provisions operative beginning January 1, 2027.
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Washington D.C
Name: DC Council Bill 260053
Passed: 8/11/25; Project law date is 10/15/25
Summary
As introduced, Bill 26-53 would establish an electronic will registry. A single-family home rehabilitation program, allow the establishment of a payment plan for delinquent property taxes, and require that all commercial registered agents to accept service of process by electronic mail. It amends the factors for establishing vacancy and blight and among other things, require the Department of Buildings to establish an expedited permit review process for certain construction and building permits. It also provides tax credits and abatements for certain class 3 and 4 properties.
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Louisiana
Name: LA SB 55
Passed: 6/20/25; Effective date 1/1/26
Summary
Provides relative to the assessment, payment, and allocation of ad valorem taxes.
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Massachusetts
Name: MA HB 3156
Passed: 9/26/25
Summary
That the town of Ipswich be authorized to increase income limits for the real property senior tax deferral program in said town.
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Name: MA HB 3979
Passed: 9/26/25
Summary
That the city of Melrose be authorized to establish a means tested senior citizen property tax exemption in said city.
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North Dakota
Name: HB 1176
Passed: 6/11/25
Summary
57-02-08.8. Property tax credit for disabled veterans – Certification – Distribution
