Committee approves bill to freeze property assessments for qualifying seniors' primary residence

Senate Bill 67, introduced and presented by Committee Chair Senator Nimas (District 38), passed the Senate State and Local Government Committee with a favorable expression and will be carried to the Senate floor.

The bill would allow a senior homeowner who turns 65, lives in the property as their primary residence and owns the property to have the property assessment "captured" at that level for taxation purposes so long as they continue to use the property as their primary residence. Senator Nimas described the measure as aimed at seniors on fixed incomes: "When a senior citizen turns 65 or older, lives in their residence as their primary residence and owns the property, the assessment for the purpose of taxation stays at that level until they no longer use it as a private primary residence," he said.

Under the sponsor's explanation, the homeowner would still pay property taxes calculated using the captured assessment at whatever tax rate applies — "if the rate goes up, then they will have to pay a higher tax, but they won't have to pay on the higher assessment," Nimas said. The sponsor also presented a fiscal analysis prepared for the bill and told the committee the projected budget impact would be modest: the fiscal note cited an estimated budget impact of $4,000,000 statewide for the first two years (years described in the packet as '25 and '26 in the presenter’s remarks).

Nimas told the committee the bill cannot reduce overall tax dollars collected in scenarios where assessments do not increase; rather, the fiscal note reflects a reduction in the budgeted increase the state typically projects when assessments rise. The sponsor said local-mandate and ballot-cost estimates were included in committee materials but that committee members did not receive the full analysis packet before the hearing; he summarized the packet at the table during his presentation.

A motion and second were recorded; the committee chair announced after roll call that Senate Bill 67 "passes with favorable expression" and will move to the Senate floor. The transcript records affirmative "Aye" responses during the roll call but does not provide a complete member-by-member numerical tally in the committee record included in the transcript.

If enacted, the provision would affect qualifying homeowners statewide and could change budgeting assumptions used by state and local governments in the short-term, according to the sponsor's fiscal summary presented to the committee.