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Sponsor outlines plan to cut primary‑residence property taxes by up to 70%; amendment work remains
Summary
Representative Ben Koppelman presented a plan, House Bill 1390, to reduce property taxes on primary residences by 70% as part of a wider reform and restraint strategy; sponsor said drafting amendments are needed to preserve existing credits.
Representative Ben Koppelman told the Finance and Taxation Committee he would present House Bill 1390 as part of a three‑part approach—reform, restraint and relief—to address property‑tax concerns. The bill as discussed in committee would provide up to a 70% reduction in tax liability on a primary residence, subject to drafting fixes the sponsor said were pending amendment.
Koppelman said Legislative Counsel inadvertently removed existing over‑65 and disabled‑veteran homestead credits from the draft; he said amendments are being worked so current beneficiaries retain intended protections. He provided a high‑level fiscal estimate for the intended version of the bill: roughly $726 million total with about $103 million already in the base budget for an existing $500 homestead credit, leaving an incremental net cost on the order of $623 million (sponsor’s estimate, pending formal fiscal notes).
Koppelman framed the proposal as the relief leg of a three‑part plan that also requires valuation reform and spending restraint. He argued a broad targeted buy‑down for primary residences would be more effective at reducing incentives for a statewide ballot measure than smaller, less‑targeted credits.
Representatives and witnesses questioned trade‑offs, including how relief would be paid for and whether sales‑tax increases or other revenue changes would be required. Representative Jim Casper and other witnesses said the state’s general fund and prior appropriations provide room to fund relief; several committee members urged pairing relief with valuation reform and local spending caps.
No committee vote was recorded on HB1390 at this hearing. The committee kept the tax department available for questions and indicated further drafting and fiscal work would precede any recommendation.
