Proposing a constitutional amendment authorizing the legislature to increase the amount of the exemption from ad valorem taxation by a school district of the market value of the residence homestead of a person who is elderly or disabled.

Contracts

• Mortgage Servicing Agreements: Review "Escrow Surplus" clauses. The retroactive tax cut will likely generate escrow overages. You must determine if your current contracts allow for immediate refunding or if you are required to hold the surplus until the annual analysis.
• School District Bond Covenants: If you hold or underwrite school district debt, review "impairment of obligation" clauses. The amendment permits the continued levy of taxes on the exempted value *only* if necessary to prevent default on existing debt.

Hiring/Training

• Customer Service (Lenders/Servicers): Train staff to handle inquiries regarding escrow recalculations. Borrowers will expect immediate payment reductions post-election; staff must explain the timeline for escrow analysis.
• Tax Consultants: Staff must be trained to calculate 2025 liabilities using both the current $10,000 exemption and the proposed $60,000 exemption to provide accurate "best/worst case" scenarios for clients.

Reporting & Record-Keeping

• Portfolio Segmentation: Mortgage lenders must immediately tag loans associated with borrowers claiming "Over 65" or "Disabled Person" exemptions to facilitate rapid bulk-processing of escrow adjustments in Q4 2025.
• Tax Certificates: Real estate closings occurring between Jan 1, 2025, and Nov 4, 2025, will rely on tax certificates that do *not* reflect the exemption increase. Closing documents should include disclosures regarding potential future tax adjustments.

Fees & Costs

• Administrative Costs: Expect increased overhead related to re-issuing tax statements (for Tax Assessor-Collectors) or running off-cycle escrow analyses (for Lenders).
• No Direct Fee Increases: The legislation does not impose new filing fees on businesses.