House committee advances acquisition-value plan for residential property amid constitutional, implementation concerns

The House Revenue Committee advanced House Bill 282, a broad proposal to move residential property toward acquisition-value taxation, after lengthy testimony and public comment highlighted constitutional issues, major implementation challenges and large potential fiscal impacts for local governments and schools.

The bill, as presented to the committee, would (1) roll a property's taxable base to a 2019 baseline (or to the fair-market value in the year the property was last acquired, for purchases in 2020–2025), (2) apply an annual escalator equal to the lesser of 2% or the consumer price index, and (3) begin using acquisition value (the purchase price) as the presumptive base for properties acquired on or after Jan. 1, 2026, subject to rebuttal in limited circumstances. The committee approved the measure 6 ayes, 2 no, 1 excused.

Why it matters: Supporters described the bill as "property tax reform" intended to ease tax increases tied to rapid market appreciation. Sponsors said the measure was designed to protect long-time owners and seniors who have not realized capital gains while facing higher assessed values. Opponents — including the State Board of Equalization, county assessors and representatives of local governments and service districts — warned that the change would conflict with constitutional language requiring uniform valuation at full market value, would produce uneven treatment among otherwise similar…