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House committee advances legislation establishing owner‑occupied residential tax subclass
Summary
The House Committee of the Whole recommended passage of Senate File 153 to create a distinct class for owner‑occupied residential property and set an 8.3% assessment rate for owner‑occupied residences for tax year 2026 and thereafter; committee amendments set transitional rules for 2025.
The House Committee of the Whole advanced Senate File 153, which establishes a separate fourth class for owner‑occupied residential real property and sets assessment rates under the constitutional amendment approved by voters in November 2024.
Representative Clauston, floor sponsor, said the bill implements Constitutional Amendment A by creating a residential class and adjusting assessment percentages. Committee amendments moved the residential owner‑occupied rate to 8.3% and included a definition of owner‑occupied (an eight‑month residency test, with an exception for deployed active‑duty military). Committee of the Whole amendments and floor amendments adjusted the effective timing so some changes begin in tax year 2025 and others in 2026, and limited owner‑occupied relief to assessed values up to $5 million in a separate committee amendment that received floor debate.
Supporters described the changes as part of a three‑lever approach to property tax reform (assessment, rates and local mill levies). Representative Harshman said the 8.3% rate represents the lowest the statute could reach while complying with constitutional constraints tying class rates within a 40% range. Sponsors estimated the change would reduce statewide assessment totals substantially (estimates discussed on the floor ranged in the tens of millions), though exact fiscal numbers were not finalized on the floor.
Opponents and cautious members urged clarity on implementation timing and on how assessors will identify owner‑occupied property. The floor adopted committee and committee‑of‑the‑whole amendments to refine implementation and timing; multiple speakers said a follow‑up amendment would address operational issues before final passage.
Ending: The Committee of the Whole reported the bill do pass with amendments and the measure proceeds through the House with multiple amendments adopted that shape owner‑occupied definitions, timing and caps on the preferential rate for very high‑value properties.
