House advances bill to slow annual local property-tax revenue growth to 2.5%

The House on Feb. 25 approved House Bill 12 35, which reduces the allowable annual increase in property-tax revenue for taxing districts from 3% (or inflation, whichever is less) to 2.5% (or inflation, whichever is less).

Representative Mike Jamieson, the sponsor, said the bill is meant to address rising property-tax burdens by asking taxing districts to limit revenue growth. "This bill sends a direct message to all taxing districts that are impacting our property taxes: give me a break," Jamieson said on the House floor.

Jamieson and supporters said the measure does not affect school capital outlay or special-education funding, which they excluded to avoid harming bond ratings. The bill preserves local control by allowing districts to opt out if they choose to raise revenue above that cap.

Opponents, including Representative Stevens and city and county leaders who spoke from the floor, warned that counties especially face fixed, unfunded mandates — such as court costs, law enforcement obligations and inmate medical care — that leave little room to cut. Those speakers said the reduction could force layoffs, reduced maintenance of roads and bridges, and cuts to essential public-safety services.

Speakers from municipalities noted that the 0.5 percentage-point change compounds over time and can affect long-term infrastructure planning. Supporters countered that the bill will force local conversations about spending priorities and that districts can opt out when revenues are insufficient.

After extended debate, the House approved the bill by recorded vote. The clerk reported 39 ayes and 31 nays; the chair declared the bill passed. Jamieson said he expected local debate about budgets to follow if the bill becomes law.

Speakers quoted in this article are listed in the speaker roster below. The House vote occurred Feb. 25, 2025.