PRE Legislation Introduced in State Senate
Principal Residence Exemption legislation has been reintroduced in the state Senate.
State Sen. Jack Brandenburg, R-Harrison Township, introduced Senate Bill 81, which addresses Principal Residence Exemption on Foreclosed Properties. SB 81 is very similar to legislation introduced by Sen. Brandenburg last session. This session’s bill has been referred to the Senate Finance Committee, which Sen. Brandenburg chairs.
Under current state law, when a financial institution takes possession of a property after foreclosure, the tax status defaults to the non-homestead rate. SB 81 would allow financial institutions to maintain the principle residence rate (PRE) on a residential property for up to 24 months on a parcel that had the PRE prior to foreclosure. Financial institutions incur an array of costs during foreclosure. Under the new Consumer Financial Protection Bureau mortgage rules, financial institutions are required to use the current property tax rates in the calculation of a borrower’s future payment. SB 81 will help thousands of additional homebuyers qualify for mortgages because the taxes would be figured at the lower PRE level.
The MCUL & Affiliates supports the legislation and anticipates that the bill will be posted for a committee hearing in the near future. If you have any questions, contact Government Affairs Director Jordan Kingdon at Jordan.Kingdon@mcul.org or Legislative Affairs Coordinator Ashley Ligon at Ashley.Ligon@mcul.org.Go to main navigation