House passes HB 155 to rebalance residential tax share to pre-2023 levels

The House moved House Bill 155 through second reading with a broad floor debate and an 87–13 recorded vote in favor of recommending the bill do pass.

Sponsor Representative Zenther Thane said HB 155 restores the share of property tax borne by class 4 residential property to roughly what it was prior to the statewide reappraisal in 2023, when residential valuation increases significantly shifted the tax burden. "House Bill 155 provides over $158 million in residential property tax relief by rebalancing the property tax burden among the 16 classes of property, restoring them to the approximate share that they bore in 2022," Thane said.

Why it matters: Thane and supporters said the bill requires no application, imposes no extra FTE burden on the Department of Revenue after a technical amendment and treats multi-family long-term rentals differently if owners commit to leasing at or below prescribed fair-market thresholds. Opponents raised concerns about distributional impacts and whether the bill fully addresses rising tax burdens in all communities.

Discussion highlights included a question from Representative Kelly about the graduated rate structure and whether owners who saw major market gains "did nothing to get there except live in one place"; Thane responded by showing examples of effective tax rates under the bill for $750,000 and $1.5 million homes and said homeowners would see reductions compared with the current 1.35 rate.

Outcome: The clerk recorded 87 representatives voting aye and 13 no on the committee recommendation; HB 155 passed second reading and will proceed in the legislative process.