The House Committee on Finance on Oct. 21 heard testimony on House Bill 4088, which would raise the taxable‑value phase‑out for the homestead property tax credit to $196,500 and index that threshold to the house‑price index instead of the consumer price index, sponsor Representative Slaw said.

Supporters told the committee the change is intended to reduce out‑of‑pocket property‑tax increases for long‑time homeowners and first‑time buyers as home prices have risen faster than CPI. Representative Slaw said the $196,500 figure was calculated by starting from a $135,000 taxable‑value limit and increasing that amount based on the increase in the house‑price index since 2020.

Under current law, the homestead property‑tax credit phases out when taxable value exceeds a statutory threshold that is indexed to CPI, Slaw said. The bill would instead index the phase‑out to a house‑price index and immediately raise the taxable‑value phase‑out to $196,500. "I believe this bill is pro‑taxpayer, pro‑homeownership, and just makes common sense," Representative Slaw said.

During committee questions, Representative Martin asked whether the bill would apply retroactively. Representative Slaw replied the change would apply going forward and "would not go back to any previous tax year," and clarified it would not give retroactive relief. Representative Young asked whether the state treasury had modeled the fiscal impact; Representative Slaw's staff member Eric said the sponsor had not asked treasury and that, in the staff member's view, it "shouldn't have a negligible impact" because the bill does not change the income phase‑out.

The testimony did not include a committee vote on House Bill 4088. The sponsor asked for the committee's support before the panel moved on to other business.