Senate panel advances House Bill 1176 to expand primary-residence tax credit and cap local levies

The Senate Finance and Taxation Committee on Monday considered House Bill 1176, legislation that would increase the state's primary-residence property tax credit and impose a 3% cap on the annual levy increase for local taxing districts while allowing local governments to seek voter approval to exceed the cap for a fixed term.

Representative Mike Nathie, who introduced the bill to the committee, said HB 1176 focuses "just on primary residences only," not agricultural, commercial or second homes. He and other backers described three main components: an expanded primary-residence credit, changes to the Homestead Tax Credit program and a 3% cap on levies that local political subdivisions could exceed only by a voter-approved exemption at a general election.

Supporters and local officials said the bill would deliver targeted relief while attempting to preserve long-term sustainability. "This is the most aggressive, durable, and responsible plan to reduce property taxes," Governor Kelly Armstrong told the committee, urging its passage and noting the bill combines relief from a state credit with reforms intended to control local spending.

What the bill would change

- Primary-residence credit: The bill, as presented to the committee, would raise the primary-residence credit to $14.50 (as written in the bill text presented to the committee). Sponsors said the expansion builds on last session's $500 credit and that the total fiscal cost of the…