Relating to the calculation of the limitation on the total amount of ad valorem taxes imposed by a school district on the residence homestead of an individual who is elderly or disabled.

Contracts

• Tax Service Vendors: Review and amend Service Level Agreements (SLAs) with third-party tax data providers (e.g., CoreLogic, Lereta). You must insert a provision requiring them to verify that their data feeds account for the SB2520 "lesser of" calculation logic by January 1, 2026.

Hiring/Training

• Escrow Analysis Teams: Train staff to identify "mid-year qualification" accounts. They must understand that the tax ceiling is not static during the first full year of exemption but is subject to a specific comparison test.
• Customer Service: Prepare scripts to explain to borrowers why their projected tax payments may differ from the standard "freeze" amount shown on previous estimates.

Reporting & Record-Keeping

• Data Field Updates: Servicing platforms must track the specific date an exemption was granted, not just the tax year. The logic trigger is whether the qualification occurred *after* the beginning of the previous tax year.
• Audit Trails: Maintain documentation showing the comparison between the standard limitation and the "actual tax imposed" to justify the escrow amount collected in the event of a RESPA audit.

Fees & Costs

• IT Remediation: Budget for one-time costs associated with reprogramming internal tax estimation engines and escrow analysis software.
• No New Government Fees: The bill does not impose new filing fees.