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Senate approves DLGF conference report after debate over local tax authority, veterans’ exemptions and CCRCs
Summary
The Senate passed the conference committee report for House Bill 1427, a large Department of Local Government Finance (DLGF) cleanup bill that includes changes to local taxing authorities, veteran property-tax exemptions, and a one-year property-tax exemption for certain continuing care retirement communities (CCRCs).
The Senate adopted the conference committee report for House Bill 1427, a broad DLGF and local-government measure, following extended floor discussion about local tax authority, veteran property-tax language, and a short-term property-tax exemption for certain CCRCs.
Senator Bassler, the bill’s conferee, summarized changes in a largely technical 67-page package that includes removal of certified tech-park rent requirements for nonprofits, updates to local government investment pool language, and language aligning other provisions with earlier legislation. Bassler said the bill also restores some property-tax deductions for veterans and disabled veterans tied to earlier changes made in Senate Bill 1.
Senator Young and others pressed Bassler on the bill’s impacts on local taxing options. Young expressed concern that the measure provides local governments the authority to raise local innkeeper and food-and-beverage taxes, arguing locales that secure authority would likely use it. Bassler responded that the bill “gives them the authority to increase tax… We do not increase the tax,” but acknowledged local governments commonly exercise newly granted authorities.
Senator Jackson and others asked about a provision granting a one-year property-tax exemption for buildings used as continuing care retirement centers (CCRCs) if the initiation fee is $500,000 or less; Bassler said the language is meant as a temporary measure and recommended a summer study to develop a long-term approach because of the issue’s complexity.
Senator Glick and others also responded to questions about the bill’s relationship to prior property-tax changes and trailer language from other measures. After debate and questions about tax impacts and local authority, the Senate closed debate and the conference committee report passed by roll call, 37 ayes and 13 noes.
The Secretary will inform the House of the passage. Sponsors and staff said they expect additional agency and legislative work to clarify and implement the CCRC language and to monitor how localities use newly granted taxing authorities.
