Summary — A.355 (Chapter 432, 2025)
Title: Provides for a partial exemption from taxation of certain residential real property transferred by a governmental entity, nonprofit housing organization, land bank or community land trust to low‑income household
Status and key dates
- Bill number: A.355
- Signed into law: October 16, 2025 (Chapter 432)
- Delivered to Governor: October 9, 2025
- Introduced: January 8, 2025
- Final legislative actions: Passed Assembly (Mar 18, 2025); referred and amended in Senate (printed as 355A/355B/355C); repassed both houses April 28–29, 2025; delivered to Governor Oct 9, 2025; signed Oct 16, 2025.
Sponsors
- Primary sponsor: Didi Barrett
- Cosponsors include Nikki Lucas, Jonathan Jacobson, Billy Jones, Alicia Hyndman, Jo Anne Simon, Matthew Simpson, Deborah Glick, William Colton, Carrie Woerner, Maritza Davila, Anil Beephan Jr., Donna Lupardo, Didi Barrett (primary), Christopher Eachus.
Related legislation
- Companion: S.1718 (Senate)
- Prior-session related: A.6176
Purpose and intent
A.355 establishes a partial property tax exemption for certain residential real property when that property is transferred to a low‑income household by specified public or nonprofit entities. The intent is to lower the tax burden for low‑income buyers who acquire homes through transfers from governmental entities, nonprofit housing organizations, land banks, or community land trusts — thereby supporting affordable homeownership and the reuse of publicly controlled or mission‑oriented housing stock.
Key provisions (summary of substantive effect)
- Creates a partial exemption from local property taxation for qualifying residential parcels transferred to low‑income households.
- Applies to properties conveyed by one of the listed transferors: governmental entities, nonprofit housing organizations, land banks, or community land trusts.
- Establishes eligibility tied to the recipient household’s low‑income status (as defined or to be defined in implementing guidance or statutory cross‑reference).
- Directs local assessors/treasurers and possibly the State Department of Taxation or other agencies to implement the exemption in keeping with statute (administrative details and exact exemption percentage/duration to be determined by statute language or implementing regulations).
Who is affected
- Primary beneficiaries: low‑income households that receive residential property through qualifying transfers.
- Transferors: governmental entities, nonprofit housing organizations, land banks and community land trusts (these entities gain an added incentive tool to facilitate transfers to low‑income buyers).
- Local governments and school districts: may see reduced property tax revenues for exempted properties; fiscal impact will vary by locality depending on number and size of qualifying transfers.
Legislative/procedural notes
- The bill was amended throughout committee and on the floor (printed as 355A/355B/355C). It was reviewed by the Assembly Real Property Taxation Committee, Senate Investigations and Government Operations, and Ways and Means.
- Signed into law as Chapter 432 of 2025. The exact effective date and any detailed eligibility definitions, exemption percentage(s), duration, or administrative procedures should be confirmed in the enacted statute text and any implementing regulations.
Potential impacts
- Supports affordable homeownership strategies and community land‑use reuse (especially where land banks/CLTs are active).
- Likely small but localized reductions in property tax revenues; potential offset by longer‑term benefits such as stabilized neighborhoods and reduced vacancy.
- Implementation will require coordinated guidance for assessors and participating transferor organizations.
