Bill No.: HB0176                  Drafter:  DKG

LSO No.:  07LSO-0440              Effective Date:  7/1/2007

Enrolled Act No.:  HEA0090

Chapter No.:

Prime Sponsor:     Representative Landon

Catch Title:       Property tax deferral program.

Subject:  Modification of the interest rate charged for certain persons qualifying under the property tax deferral program.

Summary/Major Elements:

· Current law provides for a property tax deferral program.

· Under current law, the interest rate on the taxes deferred is 4%, except that if a person qualifies solely by having purchased the property prior to December 31, 1987, the rate is the average rate of return on permanent mineral trust fund investments.

· This act changes the latter rate to the average yield on ten year United States treasury bonds for the previous three years, plus 1.5%.

· The act also changes one of the qualifiers from owning the property before December 31, 1987 to having owned the property for at least 10 years prior to making application for a deferral of taxes.