Committee advances sales-tax replacement plan with amendment tying implementation to ballot measure
Committee advanced 26 LSO 282, a bill proposing a residential exemption plus a 2% statewide sales/use tax to reimburse local governments; members amended it to trigger full implementation only if a companion constitutional amendment passes and set an implementation date for the sales tax.
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The Joint Revenue Committee voted to advance 26 LSO 282, a proposal that pairs a residential property tax exemption with an additional 2-percentage-point sales and use tax intended to replace lost property tax revenue. LSO staff described the bill as providing a 2026 partial exemption ($200,000 of fair market value) and a $2 million exemption in 2027 indexed thereafter, while establishing a "Property Tax Reduction and Replacement Account" to distribute sales/use tax revenue back to counties.
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