HB 2638
In CommitteeHouse
Spousal survivors/prop. tax.
Creating a property tax exemption for surviving spouses or domestic partners of officers and firefighters who have died from duty-related injury or disease.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill provides property tax exemptions for surviving spouses or domestic partners of certain public safety and correctional workers who died from job-related causes. The amount of relief depends on the survivor’s income and the value of their home, with higher exemptions for lower-income households. The exemption can follow the survivor to a new home if they move or enter long-term care.
- Creates a new property tax exemption for surviving spouses or domestic partners of eligible public safety and correctional workers who died due to duty-related injury or disease.
- Exemptions are tiered by income level: full exemption from excess and certain regular property taxes for those at or below income threshold 3; partial exemptions for those between thresholds 1 and 2 or 2 and 3.
- Allows transfer of exemption to a new residence if the original home is sold or the claimant moves to long-term care, as long as only one residence is claimed at a time.
- Uses 'combined disposable income' (including Social Security and other sources) to determine eligibility and exemption amount, with adjustments for retirement, income changes, and cost-of-living increases.
- Requires annual verification of income and status, with renewal every six years; false claims are subject to perjury penalties.
- Sets income thresholds adjusted annually based on county median household income and inflation (CPI-U), rounded to the nearest $1,000 or $1 depending on the adjustment type.
Who is affected
- Surviving spouses and domestic partners of eligible public safety and correctional workers — Surviving spouses or registered domestic partners of state/local officers, firefighters, correctional officers, or jail staff who died due to duty-related injury or disease may qualify for property tax exemptions based on income.
- Low- and moderate-income surviving spouses/domestic partners — These individuals may receive full or partial property tax relief depending on their income level and the value of their home.
- Local governments and county assessors — Counties and cities may lose some property tax revenue if they approved the exemption in voter-approved measures, but the state provides guidance on implementation.
- Cooperative housing associations and property managers — Cooperative housing associations and landlords may need to adjust rent or tax payments to reflect the exemption amount passed through to qualifying residents.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Low- and moderate-income surviving spouses and domestic partners of fallen public safety and correctional workers receive substantial property tax relief—up to full exemption—based on income tiers tied to county median income and inflation, helping prevent displacement due to rising housing costs.
HousingPeopleRef: Sec. 1(1)-(5); Sec. 2(8)-(9)The exemption is portable to a new residence and applies to cooperative housing, allowing survivors to move for care or affordability without losing relief—this supports aging-in-place and housing flexibility, especially for those with fixed incomes.
HousingPeopleRef: Sec. 1(2), (3), (5); Sec. 3(5)-(6)Cost-of-living adjustments to Social Security do not disqualify beneficiaries, and income thresholds are annually adjusted for inflation and county-level median income—this prevents erosion of benefits over time and improves long-term predictability for survivors.
FinancialPeopleRef: Sec. 1(4)(d); Sec. 2(8)-(9)The bill honors and provides tangible support to survivors of public safety and correctional workers who died in line of duty—this reinforces societal recognition of their sacrifice and may improve morale among first responders and correctional staff.
Public SafetyPeopleRef: Sec. 1(2), (3); Sec. 3(5)-(6)Streamlined application, electronic filing, annual verification, and clear renewal cycles reduce administrative burden and improve access—especially helpful for older or disabled survivors navigating complex systems.
HousingPeopleRef: Sec. 2(5), (6), (7); Sec. 3(1)-(3)
Potential Concerns (1)
The exemption reduces local property tax revenue for counties and cities that included the exemption in voter-approved tax measures, with no state reimbursement specified—this could strain public services like schools, roads, and emergency response, especially in fiscally constrained jurisdictions.
Local GovernmentPeopleRef: Sec. 1(5)(a)-(b); Sec. 2(8)-(9)
Who Is Most Affected
Surviving spouses and domestic partners of eligible public safety/correctional workers—especially low- and moderate-income individuals—will benefit significantly from reduced housing costs and protection against displacement. High-income survivors may receive no benefit or only partial relief, but the income thresholds are designed to target lower- and middle-income households.
Low- and moderate-income survivors benefit most: those at or below income threshold 3 receive full exemption from excess and voter-approved regular property taxes; those between thresholds receive partial relief. This group is likely to be older, on fixed incomes, and vulnerable to housing cost spikes.
Local governments (counties, cities) that approved voter measures including this exemption will experience revenue loss with no state reimbursement. Smaller or fiscally strained jurisdictions may face budget pressure, potentially affecting services like schools, roads, and emergency response. Larger counties with broader tax bases may absorb the loss more easily.
Cooperative housing associations and landlords must reduce tax liability passed through to qualifying residents and may need to adjust rent or assessments accordingly. While the bill mandates pass-through of the exemption, administrative costs and potential rent adjustments could create short-term friction—though long-term, it may stabilize occupancy for qualifying residents.
Surviving spouses in long-term care or transitioning homes benefit from the exemption’s portability and temporary occupancy rules, but those with higher incomes or complex asset structures may not qualify—especially if combined disposable income exceeds thresholds despite limited earned income.