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Conference committee agrees on 4% property valuation limit in HCR 5,011, delays implementation and narrows new‑growth treatment
Summary
A legislative conference committee reached agreement on HCR 5,011 to cap annual taxable-value growth for most property at 4%, set the proposed ballot date and accept an implementation delay and a limited treatment of new construction after negotiations over election logistics and definitions.
A legislative conference committee working on tax measures agreed to final language for HCR 5,011 that would cap the annual taxable value increase for most real property and residential mobile homes at 4% and place the constitutional amendment on the Nov. 4, 2025, ballot, the committee said during a multihour session.
The committee’s staffer summarized the measure as written: “the bill would generally limit, for property tax purposes, the growth of the taxable value of any real property or residential mobile home personal property to 4% per year,” while listing five exceptions including new construction or improvements, class changes, exemptions ending, escaped or omitted property and consolidated legal-description changes, staff said.
The agreement follows an extended discussion about the ballot timing and local election logistics. Members said they would move the constitutional amendment’s effective date back (members discussed a January 1, 2027, implementation if the ballot timing is delayed) so local clerks and taxing jurisdictions have time to adjust. In return for the later start date, conferees said they would accept a narrower treatment of ‘‘new growth’’ such that ordinary remodeling and maintenance would not be treated as new construction for the purpose of the 4% limit.
Why it matters: HCR 5,011 would change how locally assessed property values grow from year to year, limiting assessed-value growth for most properties to a set percentage and thus affecting local tax levies, ballot timing and budget planning for counties and cities.
Key provisions and clarifications
- Cap and exceptions: The cap would limit taxable appraised value increases to 4% per year, with enumerated exceptions for new construction or improvements, changes in subclass or class, loss of exemption, escaped/omitted property and changes in legal description (except certain consolidations). The committee’s staff said the proposal keeps the valuation limitation in place when title transfers unless the Legislature provides specific exceptions.
- Ballot timing: The measure as discussed would appear on the Nov. 4, 2025, ballot, but conferees agreed to revisit and move the statutory implementation date to accommodate election logistics if necessary.
- New‑growth definition: Members pressed to exclude ordinary remodeling and maintenance from the new‑construction definition. One negotiator said the statute language staff referenced already excludes ordinary repair, replacement or maintenance from new construction, and the conference accepted an offer to limit the new‑growth carve‑out to genuine new construction.
- Local concerns and next steps: Several conferees raised concerns about county clerks’ capacity to prepare ballots on short notice if notification deadlines remain early in the calendar year. The committee discussed shifting the local notification deadline and otherwise adjusting implementation timing to reduce administrative burden. Staff said follow‑up statutory cleanup and an implementation date adjustment would be required.
Quotes from the record
Eddie (conference staff): "The longer version is that the bill would generally limit, for property tax purposes, the growth of the taxable value of any real property or residential mobile home personal property to 4% per year."
Senator Peck (conference member): "If they put in there expecting there to be an election for the taxes, wouldn't it be pretty simple then just to back that off if they already had it?" (question about clerks' ability to adjust ballots when elections are already being prepared.)
Ending
Committee members said the changes preserve much of the policy work already done while providing additional time and technical cleanup to address local election administration and to finalize a statutory definition of new construction. Conferees agreed to continue negotiations and to provide technical language and implementation dates to revisers before final filing and signature steps.
