Rep. West proposes multi-year phase-down of personal-property assessment; supporters and opponents debate revenue replacement

Representative West (R-102) told the Special Committee on Tax Reform that House Bill 903 would gradually reduce the assessment percentage applied to personal property beginning in 2026 and reach roughly half the current level by 2029.

West said she sought data from county assessors and collectors but received limited responses. “Personal property tax is a tax that we’re paying ... that we have already taxed” at purchase via sales tax, she told the committee, arguing the levy is inefficient and politically unpopular. She described the bill as a phased approach intended to force a statewide conversation about replacements for the revenue stream.

Opponents said the bill would produce substantial revenue losses and must be paired with dollar-for-dollar replacement plans. Ronny C. Acdinoff, identifying himself as the state public advocate, told the committee the measure would reduce annual revenue to political subdivisions by an estimated $91 million and would cut funding to several local school districts by tens of millions. He said the school-for-the-blind fund would lose about $4 million.

Committee members and witnesses debated replacement options and the practicalities of removing a long-established tax. Representative West said she was open to alternative mechanisms to preserve critical funding and suggested modest licensing or fee offsets could be considered for specific programs.

Ending: The hearing concluded with proponents and opponents expressing interest in continued work; no committee vote on HB 903 was recorded in the transcript excerpt.