Bill
SB 1981
SB 1981 provides $2B in annual property tax relief by increasing homestead exemptions, reducing business taxes, and offering rebates - supporting homeowners, businesses, and local governments.
SB 1981, also known as the Property Tax Relief Act, is a legislative bill introduced on March 6, 2025 that aims to provide significant tax relief to homeowners and businesses across the state. The main goals of the bill are to reduce the financial burden of property taxes and stimulate economic growth by putting more money back into the hands of taxpayers.
The bill includes the following key provisions:
Homestead Exemption Increase: The bill would increase the standard homestead exemption from $25,000 to $50,000 for all owner-occupied primary residences. This would result in an average annual property tax savings of $500 for eligible homeowners.
Business Property Tax Reduction: The bill would reduce the assessment ratio for commercial and industrial properties from 35% to 25% of the property's fair market value. This is estimated to provide an average 20% reduction in business property taxes.
Tax Rebate Program: The bill establishes a one-time property tax rebate program, where eligible homeowners and businesses can apply to receive a rebate check equal to 10% of their most recent annual property tax bill, up to a maximum of $1,000.
Local Government Reimbursement: To offset the revenue losses from these tax reductions, the state would provide direct financial assistance to cities, counties, and school districts in the amount of the total estimated tax relief provided to their constituents.
If enacted, SB 1981 would provide substantial tax relief to both residential and commercial property owners across the state. The homestead exemption increase and business property tax reduction are expected to save taxpayers a combined total of over $2 billion annually.
The tax rebate program would provide an immediate, one-time boost to eligible property owners, injecting hundreds of millions of dollars back into local economies. The local government reimbursement provision is intended to ensure that critical public services and infrastructure are not negatively impacted by the tax cuts.
The bill has been referred to the Assignments committee and must pass through the legislative process before any changes would take effect. If signed into law, the provisions of SB 1981 would be implemented starting in the 2026 tax year.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
