Council adopts resolution to seek local legislation for base-year freeze homestead exemption; would go to voter referendum if passed by delegation

Newman City Council on Jan. 28 voted to adopt a resolution asking the city’s legislative delegation to introduce local legislation to allow a base-year freeze homestead exemption for city homestead properties.

City staff described the steps required: the council must adopt a resolution that would be forwarded to the local delegation, the city must publish a one-week advertisement in the local newspaper (Times-Herald) as required, and then the delegation could introduce the legislation. If the General Assembly approves local legislation, the measure would be placed on a referendum likely in the November election for voter approval.

Staff noted the difference between this proposal and House Bill 581 (state-level property tax relief option). A local base-year freeze would operate differently and, if approved by voters, could supersede HB 581 because it would provide a larger homestead freeze for properties covered by the local measure. Staff also cautioned council members that adopting a base-year freeze affects assessed values going forward, which in turn has implications for how the city sets millage rates.

Council discussed timing for submitting the resolution to the delegation and the legislative calendar; staff said crossover day is March 3 and suggested the council could delay a short time but not past the next meeting or two if it wished to meet legislative timelines. Council voted to adopt the resolution; the minutes record the vote as carried unanimously.

City staff said there may also be complementary discussions of a possible referendum on a 1¢ sales tax to reduce property taxes, and urged council members to consider sequencing if both measures move forward.