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-~--~,, ~--a <br />Changes to the Homestead Exemption Program <br />On August 2, 2007, the General Assembly ratified House Bill 1499. The bullet points below <br />highlight changes to the Homestead Exemption Program. <br />~ Effective January 1, 2008, the following changes will take place with regard to the <br />current Homestead Exemption program <br />o Taxpayer Income Thresholds -Currently qualification for Homestead <br />Exemption is based on Adjusted Gross Income (AGI is defined as income <br />(including wages, interest, capital gains, income from retirement accounts, <br />alimony paid to you) adjusted downward by specific deductions (including <br />contributions to deductible retirement accounts, alimony paid by you); but <br />not including standard and itemized deductions. <br />^ Effective January 1, 2008, qualification for the program will be <br />based on Gross Income (Gross Income is defined as income <br />(including wages, interest, capital gains, income from retirement <br />accounts, alimony paid to you) not adjusted downward by specific <br />deductions. <br />• Maximum Qualifying Income -Currently, the maximum qualifying <br />income totals $20,000 (adjusted gross income) <br />o Effective January 1, 2008, the maximum income equals $25,000 <br />(gross income) <br />® Taxpayer Reapplication Process -Since House Bill 1499 changes the <br />income base from Adjusted Gross Income to Gross Income, all taxpayers <br />who currently qualify for the exemption will need to re-apply since their <br />adjusted income may be less than their gross income <br />o Currently there are about 1,000 property owners in Orange County <br />who qualify for Homestead Exemption based on their Adjusted <br />Gross Income <br />o The Tax Assessor's office plans to contact taxpayers who are <br />currently in the program to make them aware of the reapplication <br />process <br />o All participants will be asked to file new applications for exemption <br />between now and June 2008 <br />o It is likely that some percentage of homeowners who currently <br />qualify for the exemption will no longer qualify. <br />3R Fee Exemption -Currently the 3R qualification mirrors the existing <br />Homestead Exemption qualifications <br />o Beginning January 1, 2008, if the qualification process mirrors the <br />Homestead Exemption outlined in House Bill 1499, it is likely that <br />fewer taxpayers would qualify for 3R exemption <br />