Monroe, City of; ad valorem tax; provide homestead exemption

New city tax break for Monroe homeowners

The law creates a property-tax break for homeowners who own and live in their qualifying Monroe homestead. Starting January 1, 2026, the exemption applies only with majority voter approval in the November 4, 2025, city referendum. It exempts assessed value above the previous adjusted base value from eligible city property taxes. The annual base increase is capped at the prior year's inflation rate plus 0.25 percentage points. Additions, improvements, and removals also change the base, using final values after appeals and without counting improvements twice. The state Revenue Commissioner sets the inflation-index method. Homes first receiving the exemption in 2026 use their 2024 assessed value as the starting base, including final appeal results. Later first-time recipients use the previous year's assessed value. The break excludes city interest and debt-retirement taxes, and all state, county, and school property taxes. Homeowners must apply through the city, which provides forms. Homes with an approved 2025 homestead exemption can receive this break without a new application if still eligible in 2026. Renewal is automatic while eligibility continues; recipients must notify the city when eligibility ends. A qualifying surviving spouse can keep the exemption while living in the home, but it does not transfer to a new owner. Other homestead exemptions still apply, except the city uses only the larger, more beneficial city base-year exemption. Monroe pays election costs. Without voter approval, or if the required election is not held, the exemption section is repealed 365 days after the scheduled election date.