Committee advances broad property-tax reform amendment, sends bill to appropriations

The Finance and Taxation Committee on Oct. 12 adopted a major amendment to House Bill 15-75 that changes assessment rates and expands a homestead credit, then voted to refer the bill to the House Appropriations Committee.

The amendment, offered by Representative Doctor, cuts assessment rates for commercial and agricultural property from 10% to 8.5%, reduces the baseline residential assessment from 9% to 8.5% and creates a larger homestead credit that effectively lowers the primary-residence rate from 9% to 5.5%. Committee members also discussed limits on valuation growth and other mechanics drawn from prior bills cited in committee discussion.

The package includes creation of a legacy earnings fund and a legacy property tax relief fund, changes to renter refund brackets, and caps on taxable-value increases tied to periodic voter approval. Representative Doctor said the amendment mirrors some language from House Bill 11-76 and retains the primary-residence credit structure used in earlier drafts.

Committee members sought clarification about how the changes would apply to multiunit properties, trusts and farm residences. Charles Dende, general counsel for the Office of the State Tax Commissioner, and Shelly Myers, state supervisor of assessments, advised the committee that administration often depends on county parceling and that statutory language must be explicit to produce the intended county administration. Dende noted he needed more time with the latest printed version to answer certain mixed-use examples with “any certainty.” Myers told the committee that under current county software, a single parcel with an owner-occupied duplex receives the primary-residence credit for the whole parcel unless statute or county practice requires different parceling or proration.

The committee approved the amendment in a voice vote that was followed by a roll call showing the amendment passed 12-2. Later, the committee voted to recommend a due pass as amended and to re-refer House Bill 15-75 to Appropriations; the roll call for that motion was recorded 10-4 in favor.

The committee discussion repeatedly flagged administration issues — how counties will classify duplexes, triplexes and other units for primary-residence credits, and whether farm-residence exemptions should be altered. Several members said the language can be fixed with county input or by incorporating language from other pending property-tax bills. Representative Doctor said staff and the counties can work to clarify classification and implementation before final floor action.

The committee also noted the amendment will change the fiscal note and appropriations in the bill; Representative Doctor acknowledged the appropriation amounts will be adjusted.

The committee sent the amended bill to Appropriations for further fiscal review and drafting work on county administration and classification details.